Top 8 Ways We Have You Covered for Cannabis Business Loans
Our cannabis lending programs are very comprehensive
which means a greater chance we get you funding compared to other sources. Here's how:
1. Loan Type
- There are 3 main loan types for cannabis business loans and we cover them all - real estate, equipment and working capital. If you need funding for more than one loan type, we can accommodate you.
Cannabis real estate loans
include construction, raw land, purchases, refinancing, cash-out and more. The larger loan requests
tend to be real estate related due to the prices of commercial property involved. Many cannabis businesses are expanding and need to build out facilities with construction which also adds to the value and loan amounts.
Due to the secured nature of these loans with physical real estate as collateral, this type of loan is more appealing to lenders
and thus more lenders available compared to unsecured working capital or lower ticket equipment financing.
Equipment financing loans
make up a large loan category for cannabis businesses. Since many established businesses want to become vertically integrated including dispensaries and growers, they are choosing to start in the product manufacturing
or processing market segment. This requires equipment and often a number of pieces of equipment to make a complete manufacturing system.
- Cannabis businesses often need money for things like inventory, staffing, marketing, and other working capital needs. This is usually the most difficult form of funding to obtain because there is little to no hard asset like real estate or equipment that can secure the loan. Thus, these are called unsecured loans
and we have 2 options for working capital canna loans - the Merchant Cash Advance which is a quick (a week or less) way to get unsecured funding and a term loan or line of credit
for your business.
2. Business Type
- Some cannabis business owners, funders, and bankers are concerned about whether or not the business is "touching the plant" such as growers, processors and dispensaries vs. those that are not such as cannabis consultants and accountants. To us, it doesn't matter - we fund any cannabis business regardless of your niche.
3. Business Tenure
- Needless to say because of the "green rush" everyone and their uncle wants a piece of this cannabis market. This means there are a ton of startup businesses with no history of income which makes it more difficult for these startup businesses to get funding. Most cannabis lenders
will not work with startups for this reason - they have no track record of measurable income or stability which makes them a high risk as to whether they will be able to make their loan payments.
We are different in that we will consider working with startups
if they have income from another business they can cross-collateralize and/or significant other assets including real estate equity, stocks, cash, etc.
- Cannabis lenders have their own lending guidelines with varying degrees of geographic scope, especially when it comes to real estate. When it comes to geography, some like to keep it close to home and only provide loans in their one state such as California or Colorado. Some will only finance properties that are in metro areas and thus lower risk than rural properties.
Because we have so many lending partners, we can cover the entire U.S
. for all our loan types and most of Canada for equipment financing and merchant cash advances.
5. Cannabis Type
- In the beginning it was all about marijuana businesses and marketplace but over time, hemp CBD businesses are a very fast growing segment of the overall cannabis market. We can help you with hemp loans
whether they involve industrial or medical products along with marijuana loans
for all things marijuana (higher THC).
6. Lender Diversity and Quantity
- When you go to one lender to meet your needs for a canna loan, your odds of getting funded are minimized. With our over 50 direct lending partners for cannabis loans covering all loan types, your odds of getting funded just increased dramatically - you do not need to fit in just one box with one lender's guidelines.
7. Loan Amounts
- Some lenders don't want to do business with you if your loan amount is too small or too much. Many want a minimum loan amount of $1M if it is real estate transaction or at least $200,000 if it is an equipment deal.
We cover the highs and lows for cannabis business loan amount by providing you with a minimum of $250,000 and max of $500M+ for real estate, $50,000 minimum up to no maximum for equipment financing and a minimum of $25,000 for working capital with a maximum of $5M+.
8. Streamlined Process
- We have a 3 step process designed to move your loan process forward with ease and simplicity.
Step 1: Complete the pre-qualification form
according to one of the 3 loan types - cannabis real estate loan
, cannabis equipment financing
and cannabis business cash advance
Step 2: We review your loan request
and let you know if we have a fit to move forward (pre-qualified).
If pre-qualified our funding manager will work closely with you and our lending partners to find you the best funding.