Cannabis Financing | Types, Sources And Qualifications
Locating affordable cannabis financing for cannabis businesses can be challenging. Unfortunately it’s not likely that a traditional bank will loan you money to fund a marijuana business. Surely, as new cannabis laws continue to be passed in the US, more and more financing options are becoming available.
Cannabis Financing from Banks for Cannabis Businesses
Marijuana is considered a Schedule 1 illicit drug by the Drug Enforcement Agency (DEA). As a result, it is very difficult to obtain cannabis financing from a bank or credit union and FDIC-insured financial entities like banks and credit unions are difficult options. Although marijuana is not fully legalized on a national level, it will be inevitably.
Types of Cannabis Financing for Cannabis Businesses
There are various types of financing for cannabis businesses available. Some of the most feasible options include:
- Home equity loans
- Venture capitalists and angel investors
- Personal loans based on your FICO score
- High-interest, short-term loans from private equity firms
- Cannabis business lines of credit to cover ongoing overhead
- Equipment loans and leases (vehicles, software, hardware, etc.)
These funding options often have difficult and impossible qualifications to meet for startups. Below are common qualification prerequisites for alternative cannabis financing.
Qualifying for Cannabis Big Bank or Investor Financing
These are requirements for cannabis financing with a private equity firm, angel investor, or venture capitalist :
- Gross monthly sales exceeding $10K
- Have been in business for a minimum of 6 months
- A business address, phone number, and bank account
- Incorporated your business as a C-Corp, S-Corp, or LLC
- A well-developed business plan including a realistic exit strategy
More people are turning to alternative lenders for financing for cannabis businesses. So let’s look a little closer at what they are and how they can help.
Alternative cannabis financing lenders
Banks, credit unions, and private equity lenders won’t easily approve you. In these cases, alternative lenders can help with cannabis financing for cannabis businesses. Also, the qualifications are much easier to meet and require much less unraveling of “red tape”. Many people receive the funds they need within 2-3 weeks after approval.
We can help
We even help STARTUPS! Our convenient, fast, and versatile lending program allow each owner/signer to borrow up to $200,000 with our Unsecured Capital (Cash) Program.
With a FICO credit score of 680 or higher, we can help you get pre-qualified for unsecured cash loans, Cannabis Equipment financing, Dispensary, Loans, Hemp Business Loans, Marijuana Equipment Financing, CBD Business Loans, Cannabis Equipment Lease, in addition to revolving business lines of credit. We are here to help you profit from the booming cannabis/hemp/CBD industries! Additionally that includes dispensaries, retail, wholesale, grow operations, edibles, and more!
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