With the rise of CBD products, the number of people interested in the cannabis business has also increased. However, regulations and legal implications are still blurry, and this is one of the main reasons why most investors are not fully committed.
Fortunately, there are financing options out there for cannabis business owners who want to avail of loans. Albeit few, the funding options for a cannabis business can increase exponentially once CBD products sich as the premium cbd flower by exhale well have national recognition and approval.
But for now, these are the best financial options for those who are looking for business loans:
Diamond Business Loans
This California-based financing company can work with cannabis businesses, either startups or established ones. Diamond Business Loans provides 3 different funding programs, one of which is the “unsecured capital program” wherein owners can receive a maximum of $150,000 granted the personal credit score is 680 or beyond.
Another one is the “commercial real estate purchase program” which offers a maximum of $15 million but requires a 30% down payment. The last one is the “equipment program” which can be offered on a case-to-case basis.
As a marketplace, the main business of GUD Capital is connecting business owners who are looking for loans and willing lenders. If a business owner wishes to get funded ranging from $5,000 to $20 million, GUD Capital can work with you, together with an interest rate of anywhere between 8% and 25%.
Dynamic Alternative Finance
This financing company can offer business owners loans relating to real estate, working capital, or equipment leasing. The application is online, but for those who are looking for a loan of $200,000 and more, a pre-qualification is included and will need to be complied with within 48 hours.
Small Business Funding
The Small Business Funding lender offers not only financing options but also merchant cash advances for cannabis businesses. You can apply for it online and wait within 24 hours for their decision.
This institution is providing loans but in a form of merchant cash advances. You can avail of a loan starting from $50,000 to $5 million, but the qualifications include the following:
- At least 4 months of experience in business
- Yearly sales going over $150,000
- Personal credit score beyond 500
United Capital Source
The United Capital Source has a specialty in offering business loans to cannabis business owners. With the use of a network of financiers, owners can obtain various types of loans. The application can also be done online and you can expect feedback within 24 hours. If approved, the funding can begin in just a couple of business days.
There are also alternative funding options wherein owners can get financial help indirectly. Two of the most popular are venture capital firms and crowdfunding. Although the aforementioned funding options are solid enough, remember that cannabis products, especially CBD, are not yet fully legal.
Even if the cannabis business will get better, expansion in places where there is still stigma or punishment is not a great idea. It is wise to stick to your turf as you grow your CBD business.