Cannabis Dispensary Loans
Don’t let cash flow slow your roll.
Keep your shelves stocked with FundCanna’s flexible and affordable financial solutions.
Good news, cannabis lovers! This is the best time ever to be an enthusiast.
Sure, marijuana is still illegal on the federal level, but decades of draconian laws are crumbling before our very eyes. We see it in the ever-growing number of states that are legalizing marijuana — not just for medical use, but for good old recreational fun!
It’s as if a wave of common sense is sweeping across the country, and in its wake, countless cannabis companies are springing forth. Take dispensaries, for instance. Long gone are the days of buying pot brownies in parking lots.
You now have access to a dazzling array of elevating goods, all of which are lab-tested for potency and purity.
Want an absolutely delicious edible with exactly 2.5mg of a high-quality hybrid THC? You got it.
Craving a refreshing CBD beverage? You have options.
A great dispensary captures the imagination. It inspires awe. Step into a great one and you’re bound to feel like a kid in a candy store.
All the best dispensaries have one thing in common — lots of awesome inventory. And therein lies the rub.
You need a lot of working capital to operate a dispensary.
It can be difficult to find a line of credit. Traditional financial institutions aren’t offering cannabis companies many financing solutions. Marijuana businesses don’t have the same access to financing options as, say, their peers in beer. That’s where we come in.
FundCanna is the leading provider of cannabis funding for a reason. Not only do we have the experience and resources you need, we love this industry and want to see every last link of the supply chain succeed and flourish. Especially dispensaries like yours!
We take pride in providing a wide variety of financing solutions to dispensaries: cash advances, equipment financing, commercial real estate loans, and more. We will help you secure the working capital and cash flow you need to keep your shop stocked with eye-popping inventory that will keep your customers coming back.
Don’t let cash flow slow your roll.
Keep your shelves stocked with FundCanna’s flexible and affordable financial solutions.
Good news, cannabis lovers! This is the best time ever to be an enthusiast.
Sure, marijuana is still illegal on the federal level, but decades of draconian laws are crumbling before our very eyes. We see it in the ever-growing number of states that are legalizing marijuana — not just for medical use, but for good old recreational fun!
It’s as if a wave of common sense is sweeping across the country, and in its wake, countless cannabis companies are springing forth. Take dispensaries, for instance. Long gone are the days of buying pot brownies in parking lots.
You now have access to a dazzling array of elevating goods, all of which are lab-tested for potency and purity.
Want an absolutely delicious edible with exactly 2.5mg of a high-quality hybrid THC? You got it.
Craving a refreshing CBD beverage? You have options.
A great dispensary captures the imagination. It inspires awe. Step into a great one and you’re bound to feel like a kid in a candy store.
All the best dispensaries have one thing in common — lots of awesome inventory. And therein lies the rub.
You need a lot of working capital to operate a dispensary.
It can be difficult to find a line of credit. Traditional financial institutions aren’t offering cannabis companies many financing solutions. Marijuana businesses don’t have the same access to financing options as, say, their peers in beer. That’s where we come in.
FundCanna is the leading lender in the cannabis space for a reason. Not only do we have the experience and resources you need, we love this industry and want to see every last link of the supply chain sparkle and shine. Especially dispensaries like yours!
We take pride in providing a wide variety of financing solutions to dispensaries: cash advances, equipment financing, commercial real estate loans, and more. We will help you secure the working capital and cash flow you need to keep your shop stocked with eye-popping inventory that will keep your customers coming back.
Applying for a Cannabis Dispensary Loan has never been easier.
Fill out the form below and have access to the capital you need in as little as 24 hours.
Explore if our Dispensary Financing solution is right for you
How a Cannabis Dispensary Loan works
Cannabis Dispensary requests Working Capital from FundCanna to cover payroll and purchase more products to fill their shelves.
Cannabis Dispensary submits documents to FundCanna. FundCanna pays Cannabis Dispensary within 24 hours.
Cannabis Dispensary now has the necessary funds to pay their staff and order additional products.
Cannabis Dispensary makes payments to FundCanna and pays off their loan with favorable terms.
How a Cannabis Dispensary Loan works
Cannabis Dispensary requests Working Capital from FundCanna to cover payroll and purchase more products to fill their shelves.
Cannabis Dispensary submits documents to FundCanna. FundCanna pays Cannabis Dispensary within 24 hours.
Cannabis Dispensary now has the necessary funds to pay their staff and order additional products.
Cannabis Dispensary makes payments to FundCanna and pays off their loan with favorable terms.
Cannabis Dispensary Financing FAQ's
You may need between $250,000 to $5,000,000 to open a cannabis dispensary. The number can grow even more in certain markets. Unfortunately, since cannabis is still banned at the federal level, banks and traditional funding institutions aren’t eager to provide funding for cannabis businesses. They don’t want to risk any possible prosecution due to financing a cannabis dispensary.
The lenders that decide to finance you often charge sky-high interest rates since they deem the cannabis industry a risk. Other institutions may require collateral or a higher down payment when funding your cannabis dispensary, fearing similar risks.
All the best dispensaries have one thing in common — lots of awesome inventory. And therein lies the rub.
You need a lot of working capital to operate a dispensary.
It can be difficult to find a line of credit. Traditional financial institutions aren’t offering cannabis companies many financing solutions. Marijuana businesses don’t have the same access to financing options as, say, their peers in beer. That’s where we come in.
FundCanna is the leading provider of cannabis funding for a reason. Not only do we have the experience and resources you need, we love this industry and want to see every last link of the supply chain succeed and flourish. Especially dispensaries like yours!
A good cannabis dispensary has a wide variety of items
on its menu to capture customer interest.
When running a cannabis dispensary, you should have an inventory that offers the best products,
providing consumers with what they want and need. Achieving that supply stock requires a lot of working capital.
Unfortunately, current federal laws in the US make it virtually impossible for cannabis dispensaries to get funding solutions from traditional financial institutions such as banks.
That’s where FundCanna comes in. We give you the finances you need to stock your cannabis dispensary with the ideal inventory to will keep customers knocking at your door.
How Dispensary Financing Helps
You may need between $250,000 to $5,000,000 to open a cannabis dispensary. The number can grow even more in certain markets. Unfortunately, since cannabis is still banned at the federal level, banks and traditional funding institutions aren’t eager to provide funding for cannabis businesses. They don’t want to risk any possible prosecution due to financing a cannabis dispensary.
The lenders that decide to finance you often charge sky-high interest rates since they deem the cannabis industry a risk. Other institutions may require collateral or a higher down payment when funding your cannabis dispensary, fearing similar risks.
Unfortunately, the hurdles don’t stop there. Here are some of the barriers dispensaries faces when getting a loan or funding–and how we can help your company overcome them:
Legal Restrictions By The Federal Government
Even though the cannabis industry is becoming one of the largest industries in the US, it’s still considered a Schedule 1 substance in the eyes of the federal government and the DEA. Banks and other traditional funding institutions that cater to the cannabis industry, therefore, risk getting flagged for money “laundering.”
The federal government still considers the revenue generated by cannabis businesses as “drug money,” which can be subject to staggering regulations, including tax code 280E and RICO charges. Banks that are FDIC insured typically won’t finance or even open a checking account for a cannabis business for fear that their insurance may become null and void for dealing with drug money. Fears of losing weary non-cannabis customers compound the issue.
As long as cannabis is still considered a Schedule 1 substance, banks fear that the federal government may suddenly interfere with legalized state rulings. Such a move would potentially disrupt dispensaries or lead to their closure, making it impossible for banks to recover money loaned.
Cash Business Model
Another reason it’s so hard for dispensaries to get funding is that the cannabis industry operates mainly on a cash-only basis.
Because most cannabis companies can’t use any form of credit and debit payments or even operate checking accounts, cannabusinesses usually cannot provide needed documentation, such as a credit score or bank statements, to potential financiers.
Without bank statements or credit scores, it’s difficult for lenders to assess a dispensary’s financial health to determine its ability to repay a loan.
Cannabis Deemed A High-Risk Industry
Because of federal and local restrictions and the cash model mentioned above, banks and traditional lenders consider cannabis businesses a high risk.
Banks that cater to the cannabis industry also expose themselves to regulatory consequences for engaging with companies that profit from federally illegal activities.
Hopefully, this may end soon as the proposed Safe Banking Act of 2021 aims to prevent federal banking regulators from penalizing financial institutions such as banks for working with cannabis businesses. The act also seeks to remedy some safety challenges, such as theft dispensaries face while handling so much cash.
However, until the federal government changes its stance on the legality of cannabis and reforms are implemented, traditional financiers and banks won’t likely serve as a financing option for your cannabis business.
Because of the current situation, dispensary operators are typically seeking funding in the following ways:
Self-Funding
One easy but riskier way to finance a cannabis business is through self-funding. Do you have some savings or stable income from other ventures? You can use some of this money to set up your dispensary but could risk losing your savings in the process.
Friends And Family
One of the best things about this option is that you can bargain for a low-interest rate and a flexible repayment arrangement. But if you fail to return the investment, your loved ones may be out on a substantial sum of money.
Investment Groups
Cannabis dispensaries also get funding from private investors. Although helpful, private investors offer high-interest rates and often come with an option to convert a loan into an equity stake in the company (convertible debt).
Partners
Countless people are trying to break into the cannabis industry. Partnering with people who share the same goals and vision as you will help raise the needed capital. People in a partnership can also benefit from each other’s unique skills and talents.
Capital Brokers
Cannabis capital brokers locate and qualify potential investors seeking to invest in the cannabis industry.
Additional Dispensary Problems Created By Federal Regulations
Financing isn’t the only issue dispensary operators must contend with. Federal regulations create a myriad of difficult hurdles, including:
Most Operate In Cash Only
As mentioned, although a few cannabis businesses accept debit or cryptocurrency, cannabis is a predominantly cash industry.
This model leaves cannabis dispensaries vulnerable to break-ins and robberies, as everyone knows the cash-intensive industry holds its cash on-site or with a third-party provider.
There’s also the risk of money disappearing while in transit. It’s common for a cannabis distributor or cultivator to send their drivers from point A to B to deliver products and then return with thousands of dollars–in CASH. Thieves are aware, amplifying industry concerns. Examples include a man allegedly stealing at least $145,000 from a van in Santa Ana in 2020.
Cannabis dispensaries also need someone to count the cash, make money drops, earmark money for taxes and other expenses, obtain money orders, etc. This scenario can increase the risk of theft and misappropriation, as reports indicate that 90% of money and product losses in the cannabis industry are due to employee theft.
Cannabis Dispensaries Can’t Make Standard Business Deductions
Usually, businesses can deduct company expenses such as wages, rent, equipment, supplies, etc. However, it’s different for cannabis businesses.
According to section 280E of the Internal Revenue Code, businesses dealing with federally controlled substances such as cannabis can’t deduct any production, distribution and sale expenses.
The regulation makes it more expensive to run a cannabis dispensary compared to any licensed non-cannabis business. Here are some of the expenses that a cannabis dispensary can’t deduct on their business tax return which other traditional companies can:
- Contract labor
- Equipment purchase/repair
- Insurance
- Inventory cost
- Licenses and fees
- Professional fees
- Rent
- Salaries
- Salaries
- Storage
- Utilities
A cannabis dispensary can still deduct the cost of goods sold (COGS), which refers to all direct production costs, including cannabis purchases and travel. Be careful when deciding what to include in COGS. If the IRS comes knocking, they will likely scrutinize thoroughly.
How FundCanna’s Cannabis Dispensary Financing Can Help
Opening and running a successful cannabis dispensary is a costly affair.
First, there’s the expensive application process for licenses, with some states requiring upward of $4,000 for retail licensing.
Some large distributors pay up to $100,000 for their annual licensing!
You will also need to acquire space for your business, hire qualified staff, buy inventory, pay for security, market your brand, and still have enough working capital to fund your dispensary's daily operations.
As we’ve already established, traditional financial institutions and banks won’t typically finance a cannabusiness operation as long as the federal government considers marijuana a Schedule 1 substance.
So where will you get the working capital you need to stock your dispensary, buy inventory, etc.?
Here’s where we come in as FundCanna. We have a wide range of flexible funding solutions for cannabis dispensaries, including:
Working Capital gives you enough financial wiggle room to grow and expand your cannabis dispensary.
With our flexible Working Capital funding solution, you’re cushioned against unexpected or seasonal downtime with enough money to pay your suppliers and subcontractors, launch a marketing campaign, pay employees, and still take advantage of any available inventory discounts.
Our Vendor Financing solution helps free up the cash flow you need to expand. Suppose you want to purchase new trucks for delivery, lease cannabis equipment or buy raw materials for your cannabis dispensary.
Say you need to purchase a new delivery truck. All you have to do is to contact FundCanna. Once you’re approved, we’ll pay the entire invoice amount in as little as 24 hours.
At FundCanna, we want to be the bridge that
helps your cannabis dispensary get to the other side.
We are passionate about all links in the cannabis industry. We believe every qualified cannabis dispensary should have access to adequate and flexible funding solutions to attain its goals and vision.
Here’s how to get the money you need in less than 48 hours:
- Apply For Funding:
A cannabis brand requests working capital from FundCanna to cover payroll, purchase inventory, buy equipment, etc. - Submit the Necessary Documents:
As you fill out our online application form, you’ll be asked to submit vital information about your dispensary. - Get Approval
Our team will approve your application in as little as 24 hours. Once approved, you can expect money within 24 hours. - Make Payment to FundCanna
Pay FundCanna back using favorable terms agreed upon before the start of your loan.Which funding solution do you need? Contact FundCanna for expert advice!
Get the funding you need. FAST.
Approvals in as little as 24 hours
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