Cannabis Business Loan Options
For example, marijuana businesses now have access to business cash advances which they can use for working capital, inventory, equipment, marketing, new locations or whatever is needed. Some lenders require as little as 3 months in business and verification of income with 3 months of business bank statements showing a minimum of $10,000 in monthly deposits. These advances are qualified and funded quickly - 3 days for an approval and a week for funding into your bank account.
Another emerging option for cannabis startups (and seasoned businesses) are lines of credit that are based solely on your credit profile. This is ideal for pre-revenue or minimal income businesses that cannot qualify for a cannabis business loan based on their income.
The minimum credit score to pre-qualify is typically 680+ and the loan amounts can be as high as $400k. This can be a great option for startup costs that you don’t want to pay for out of pocket such as obtaining your Reg CF status and getting listed on a crowdfunding platform.
For cannabis businesses that have tapped out their friend and family network along with their credit cards, a new option has emerged - private lending groups that cater to the cannabis industry. These lenders provide options for cannabis equipment leasing and cannabis commercial real estate financing. Due to the high risk nature of lending
to the cannabis industry, you would think that marijuana businesses would expect to pay a bit higher in terms of rates or the overall cost of the loan. Sometimes yes and sometimes no depending on the lending program.
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