Using Equipment Loans to Fund a Marijuana Business
One of the most popular ways to fund a marijuana business is to secure an equipment loan to purchase or lease the vehicles, furniture, machinery, inventory, and other necessities your marijuana business requires to begin or sustain operations.
This type of loan requires an excellent credit rating and you’ll have to provide 15%-20% of the total cost of the equipment to initiate the loan. If you can contribute more than 20%, you’ll have an easier time getting financed and have lower installment payments as a result.
If you choose an equipment leasing option, you will still have to come up with the down payment and have an excellent credit score. This option to fund a marijuana business allows the lessee to use the equipment throughout the leasing period without having to worry about maintenance and repair costs. Further, when the contract ends, the lessee may enter into a new contract and receive updated equipment.
Using Short-Term Loans to Fund a Marijuana Business
Short-term loans primarily differ from traditional bank loans in that they are not based on any specific interest rate. Instead, the lender uses a special multiplier called a “factor fee” or “factor rate”. This fee adds to the amount of the loan and serves to replace traditional interest fees. The factor fee is determined by various personal factors like:
Credit card debt
Years in business
Personal credit score
Business credit score
The main benefit of using a short-term loan to fund a marijuana business is that you receive the money quickly, sometimes in as little as 24 hours.
Using Cannabis Lenders to Fund a Marijuana Business
Non-bank alternative lenders have made it easier than ever to fund a marijuana business. This is by far the most popular option for securing the financing needed to launch, grow, and sustain a cannabis business of any type. “Company Name” partners with a network of private cannabis lenders who specialize in these loans, which are still considered high-risk because of the current federal-level marijuana laws.
Well-qualified applicants can quickly receive the capital they need to meet financial obligations and take care of staff members and customers. Call our team of financial advisors at “Phone Number” today to discuss how we can help you fund a marijuana business and keep it operating into a lucrative future.References United Capital Source - Small Business Loan Options For Legal Marijuana Dispensaries & Businesses FindLaw - How to Get Financing for a Marijuana Business Merchant Maverick - How To Finance A Medical Marijuana Dispensary