Cannabis Equipment Leasing
And Financing for all Equipment...

We know how critical it can be to a cannabis business to get cannabis equipment leasing or financing. You need the equipment to expand your business and capitalize on market opportunities as soon as possible. We get it and we're to help farmers, cultivators, extractors, processors, trimmers, packagers, labs and more.

Some of our program guidelines include funding amounts from $50k - $10M+, terms from 12-48 months, startup and expansion funding, and the most competitive rates we have seen for companies in this industry. If you have a project requiring real estate acquisition and/or build out including cannabis equipment totaling $10M+, see our large project financing information.

Easy 3 Step Process

1) Complete the quick and easy pre-qualification form and once received, we will call you to discuss your options.

2) If we have a potential fit, provide us with the required documentation for your business and financing request.

3) We'll review your documentation and let you know what we can do for you.

Why Lease Cannabis Equipment?

• Take advantage of emerging technology
• Increase your cash flow without heavy up front cost of buying
• Short-term leases can help evaluate if the equipment fits your business needs
• Enjoy the tax benefits of writing off lease payments.

How Cannabis Equipment Leasing Works in 5 Steps

Please note that there are variations in the way cannabis leasing companies structure their process but here is the most common.

First, the cannabis leasing company requests financials from you along with the vendor quotes you have obtained for the equipment you want. It is also helpful if you provide a spec sheet on the equipment.

2nd, the leasing company will do an initial review to determine if the equipment is viable for their lending guidelines. For example, some cannabis equipment financing companies will only finance extraction equipment and shy away from other equipment such as HVAC or lighting.

3rd, an assessment of the equipment vendor location is made. The preference for U.S. cannabis equipment lenders is for the vendor of the equipment to be located in the U.S. However, sometimes the equipment will be sourcing from other countries such as Canada or China. If so, the logistics of shipping and vendor viability come into more consideration.

4th, if the above steps meet lender guidelines, a closer review of the company financials is completed. The main factors the lender is looking at are the following:

A. The overall amount of loan you are seeking. Most lenders have a ceiling on the amount they will finance - it may be $500k, $1M or $10M+ or something else.

B. Your current and past business income. This tells the lender if your company will be able to afford the lease payments from your current income along with how long you have been in business. The longer you have been in business, the greater the track record and stability you show the lender which increases chances of qualifying. If your company is a startup, that does not automatically disqualify loan approval. Other considerations are made per below that can help your chances.

C. The amount of down payment. The more you put down on the equipment from your own money, the more skin in the game you have and thus are sharing more of the risk that a lender considers. This gives a lender more comfort in knowing you are putting your own money at risk and are serious about making this venture work. The lender does not want you to go out of business and default thereby having to take back the equipment and re-sell it.

D. Your company owner(s) credit score. Most cannabis equipment lenders require a 650 credit score while a few will go down as low as 600.

5th, if you are approved for financing after this initial underwriting review, you will be given a quote on the terms of the lease including the interest rate, term and monthly payment. Once you agree to these terms, a contract for the lease will be sent to you with full information regarding the lease including the above terms.

Upon signing of the lease, the lender will typically request the down payment monies and/or the first and last month lease payments. Once these monies are received by the lender, the lender will coordinate securing the equipment from the lender and shipping it to you. Upon receiving, inspecting, and approving the equipment, your lease officially begins. Sometimes the lender will also do a site inspection of the equipment as well.

The Biggest Trend in Cannabis and Hemp Equipment Financing - Extraction

By far the greatest number of requests we receive for financing these days is for cannabis and hemp extraction equipment including CO2 and ethanol extractions systems. Usually these are off the shelf solutions from one of the major equipment manufacturers with prices ranging from $50,000 - multi millions depending on the number of units and configuration of the manufacturing labs.

This is the fastest growing area of cannabis equipment financing because of the demand for product currently outpacing supply for hemp CBD products as well as higher THC tinctures. Dispensaries and growers are deciding to vertically integrate and include processing as part of their business plan. A whole host of others simply see the opportunity to start an extraction lab and are jumping in as a startup. Regardless of your scenario, we have financing solutions to accommodate your goals.

Top 10 Questions to Consider Before Financing Cannabis and Hemp Extraction Equipment

Before implementing extraction equipment in your hemp or cannabis processing operation, you may want to consider...

1. Do I want to buy an off the shelf system ready made by a current manufacturer or do I want to design a custom extraction solution? With a current mfg., you get proven systems backed by the manufacturer with expected inputs and outputs, cost of operation and so forth. However, these systems may not meet your need for capacity or other solutions which require a custom system with larger capacity for example.

2. What technology do I want to employ? There are a number of advantages to the main extraction technologies of CO2, ethanol, ultrasound, and butane with considerations involving the level of harmful residual chemicals and waste associated with each along with production capacity, solvent and processing costs, etc.

3. What are the end products I am creating? Whether it be crude oil, distillate, finished CBD oil, CBD isolate, vape products or others, the further the extent of processing needed requires additional equipment to meet that end.

4. What supporting equipment will I need? If you plan on producing CBD isolate for example, you will need more than the extraction equipment. You will also likely need rotovap and distillation equipment at a minimum.

5. What is the sell price of the equipment needed? Most of us have a budget and cash flow that needs to be considered unless you have deep pockets and sky is the limit. Quality, warranties, efficiency, throughput, technology and more are all considerations that play into equipment cost.

6. What will be required for fire and other safety codes for my processing lab? If you are using solvents like butane and ethanol, fire safety requirements must be met to accommodate hazardous fumes and potential explosions for example.

7. What will manufacturers require for deposits on the equipment when I order? This varies per manufacturer so be sure to inquire.

8. Do I want to do my own testing on the biomass and finished products? It's ideal if you can do your own testing so that you can be ensured of the quality of the raw material inputs and your manufactured outputs while also gaining efficiency and control by doing everything in house. Of course, this would mean an additional investment in equipment and human resources.

9. Will there be enough raw material to process in the off season or should I have additional refrigerated space for storage? We have seen during the summer time that the previous year's crop has been mostly or all processed creating a shortage of raw material to process into your products for sale. In addition, what material is available is often degraded to lack of refrigeration of the product over several months. Having refrigerated storage can help you alleviate these issues.

10. What is the lead time for the equipment to be shipped or for us to custom design and source the parts? Check with your manufacturers for off the shelf purchases and your engineering team for design and in house manufacturing timing. It's a good idea to build in some contingency time as well.

We here it often..."You do cannabis equipment leasing?" (in disbelief)

True, there are not many companies that will do cannabis equipment financing. Lenders have 3 main concerns leasing in the marijuana space.

First is the obvious Federal law and all the regulations that go with it.

2nd and less known is that because there are so few players, there is not enough market data and experience with cannabis business repayment performance to always accurately calculate their risk.

Third is that much of the cannabis equipment to be leased did not have a strong enough resale market to ensure that lenders could sell the equipment if a lessee or borrower defaulted.

No Worries Here - we have solid cannabis equipment leasing and financing lenders waiting to help you finance your next cannabis equipment project.