Cannabis Business Loan Options
The $10 billion Cannabis Industry is growing fast, with expectations of up to $50 billion by 2026. The cannabis businesses and the marijuana industry comprise legal cultivators and producers, consumers, independent industrial standards bodies, ancillary products and services, and its industrial derivative, hemp. Cannabis business owners have been inhibited by federal government regulatory restrictions on both medical and recreational use of marijuana for most of recent history, but the legal marijuana business market has emerged rapidly as more governments legalize medical and adult use of marijuana, hemp, and other cannabis products. Cannabis lending has followed the trend.
Cannabis Businesses We Fund
We fund a wide range of cannabis businesses and provide hemp business loans, including:
- Cannabis & Hemp Growers
- Marijuana-Infused Products
- Wholesale and Manufacturer’s
- Retail Marijuana Dispensary
- Medical Marijuana
- Cannabis/Hemp Products & Accessories
When operating a Cannabis business there are many challenges to face. Whether it be State government regulations or Federal restrictions, navigating can be difficult to say the least. Looking for financing for the business is no less challenge either as most banks and lenders are subject to the Federal prohibition with dealing with the Cannabis industry. Tell them your looking for dispensary loans and see what happens.
But there are options for business funding for your Cannabis business other than finding investors to raise capital. The AdvancePoint Capital marketplace has a variety
What Are the Most Common Uses of Loan Proceeds from Cannabis Business Financing?
Cannabis business loans can be used for various purposes. A business loan can help you grow fast and easily, from expanding your business to financing your equipment. Here are the most common areas where you can use your cannabusiness funding:
- Working Capital
- Equipment Financing
- Cannabis Biotechnology
- Cultivation, Growing, and Farming
- Hemp & CBD Products
- Marijuana Product expansion
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AdvancePoint Capital makes the loan application process a simple, straightforward experience.
Cannabis Business Loans Options
Business Cash Advance for Cannabis Farming
Business Cash Advance, also known as Merchant Cash Advances, are not loans but an advance by purchasing future receivables for a lump some now. A set percentage of future sales repays this product.
Cannabis (Commercial Real Estate Collateral Based) Equity Financing
Commercial real estate loans can leverage the equity of the property for lending. Due to cannabis, an alternative lender, not an FDIC-insured bank, provides this type of cannabis business loan. Be prepared to provide document support and details about the involved real estate. A real estate appraisal will be needed.
Invoice factoring is a great solution for businesses that regularly invoice their clients with terms of net 30 to net 60 to repay. This is an advance off an unpaid invoice. Great for improving cash flow.
How to Prepare for Cannabis Business Funding?
To acquire cannabis loans and other alternative financing solutions, the owner must be prepared. Let's review what needs to be addressed before applying.
Business Plan: Make sure you have a clear description of your activities. A robust website is a great way to convey what you do, how you operate, do you comply with State law related to the marijuana business, and who leads the organization.
Credit Score: Ensure all owners have checked their credit history and credit score. See if there is anything you can do to improve your credit score before applying.
Cash Flow: How are you managing cash flow? Are the bank statements always cash flow positive and healthy reserve balances? Are you managing ongoing expenses? What are your annual sales? Are current sales at pace or growing month to month?
Supply Chain: Do you have good relationships with the cannabis supply chain?
Business Needs: Make sure you know the reasons you need money. Needs may include, but are not limited to, equipment financing to purchase new equipment, working capital loans (more money, yes, but what do you need working capital for?), a revolving line to support cash flow shortfalls or purchasing power, or a term loan for a large expansion. These are important questions.
Financing Solutions: When looking at financial solutions, ask questions and find out what financing options are available for the cannabis industry. Financial solutions will vary in the cannabis industry with various loan options it's not as simple as a basic cannabis loan.
Advice, Tips, and Warnings about Cannabis Business Financing
Like any other loan product, it starts with asking the question, why?
- What are you using the money for?
- Do you need equipment financing?
- Are you looking at financing because you were declined for more traditional options?
- How does getting financing help?
- Did you use a cost-versus-benefit analysis?
- What are interest rates?
Make sure that you’re asking all of the questions and looking for the right answers when deciding between business loans and other funding products. Marijuana businesses have less options than other traditional businesses so choose your financing options carefully.
Apply for Cannabis Business Financing
AdvancePoint Capital offers easy cannabis business loans that can help answer any questions you may have. Our customers love the fast, streamlined process and high approval rates due to the options available that come from working with us — and their businesses are thriving because of it. Let us help you find funding.
Applying with AdvancePoint Capital is as simple as a 1, 2, 3 process. Start with this online form, then fill out the short application page, wait a few hours for your approval, and then get your money!
The fast, convenient, and straightforward way to get the business loan you need for your business – now!
Get your quote today by filling out our simple form.