Cannabis loans are a financial option when you’re looking to grow your operations, cover inventory costs, and pay for regulatory compliance expenses. A loan can help you overcome these financial hurdles.
However, getting a cannabis loan requires some specific requirements to ensure you get funded legally, so you can grow your business.
We’ll dive into the steps of applying for cannabis business loans and the top ones you can access.
Why Get Cannabis Business Loans
Cannabis business loans can cover the costs of operating your businesses. Whether you want to pay for your inventory, equipment, utilities, or other expenses, a loan gives you the flexibility to pay down your costs.
In the cannabis industry, expenses are much higher for businesses than for non-cannabis-run businesses. Applying for and receiving a loan can provide security so you can work on the things you need.
How To Get Business Loans
If you’re thinking about getting a business loan for your cultivation facility, dispensary, or testing facility, consider finding the best credible ones.
Here are some essential tips to get a cannabis business loan:
- Go for cannabis-friendly banks: It’s the most practical way to get a loan, but make sure the bank serves cannabis businesses. You need to adhere to cannabis compliance regulations to be considered for the loan.
- Look into online lenders: These are companies with application requirements your business must meet to receive loans.
- Apply for social equity lending: Social equity loan programs are offered to businesses that qualify. Many can be searched online or in the local community.
- Find private lenders: In addition to online lenders, you can also seek private lenders who offer loans privately. These lenders are individuals, groups, or investors that use their money to fund your business. They have no affiliation with banks or credit unions.
Getting a cannabis business loan is a smart pathway to take, but it’s going to take some research. You also need to make sure your business is in standing order by following the compliance protocols to qualify for some loans.
How To Apply For Business Loans
The lender you’re working with has guidelines for your business to follow. Not all are going to want you to have the same qualifications, but they may have similar requirements for you to deliver to them.
They are gonna need your business to have the necessary documents available including financial status reports, legal status, business plan, and how your business will use the loan.
For your business to receive any loan, it’s best to see if you’re eligible first before applying or reaching out for a loan.
Top Cannabis Business Loans
Now you understand how to get a business loan, here are some of the top cannabis business loans you can look into today.
Safe Harbor Financial
Safe Harbor Financial is a banking company catering specifically to cannabis businesses.
Company Overview
The company began serving the community in 2015, delivering cannabis banking and loan services.
Loan Products Offered
Safe Harbor Financial provides many services to cannabis companies, but the main thing you should know is they offer loans and investor relations. They can help you get the financing you need, especially if you’re in a pinch. For loans, they can provide up to 10 million depending on your eligibility and status.
Eligibility and Application Process
To apply you need to have all business documents, a tax ID number, how you’re going to use the funds, your business license, the loan type you need, and your personal credit history.
FundCanna
FundCannabis offers financing for the cannabis industry to scale operations.
Company Overview
The company has been helping cannabis owners for over 20 years and continues to do so today. They work with any business in the cannabis industry and provide loans of any amount.
Loan Products Offered
They offer many traditional loans, equipment, vendor financing, and lines of credit. These are some loan types you can expect to receive from FundCanna.
Eligibility and Application Process
They boast you can receive funding in less than 24 hours by submitting the necessary documents and then waiting for approval. As you go through the process, the company will have several requests so it’s be prepared.
Upwise Capital
Upwise Capital is a fast-growing business offering different financial services to traditional and now cannabis businesses.
Company Overview
The company has been in business since 2020 to deliver proper financing to businesses that need it most.
Loan Products Offered
Upwise Capital offers lines of credit, equipment and real estate financing, and cannabis term loans.
Eligibility and Application Process
When applying, you need to complete the application and have your cannabis deck and debt schedule, driver’s license, business bank statements over the last 6 months, personal finance statements, YTD P&L and balance sheet, account receivables report, inventory list, purchase orders, voided business check, and an executive summary, use of funds and loan type requested.
These companies work with businesses in the cannabis industry and may offer your business loans so you can scale. There are many different types and not all are going to be the right fit for your business.
It’s best to work with a cannabis accountant before you make your final decision since they can work with you to set everything up.
Last Considerations
Finding and applying for loans is going to take a while, but being consistent in searching is what will provide you with the required capital you need.
When you apply for these loans, it’s best to have a cannabis accountant on hand. They can provide all the necessary documentation for your business to get accepted. Some even work to help you get social equity loans.
Look no further than Green Space Accounting, for all your financial and accounting needs. We have been in business for several years and understand your cannabis business needs to receive any loan amount.
Our accountants can jump on a quick call with you to review your business status and help you prepare for a cannabis business loan application.
Contact us today to get started.
