Cannabis Financing Options

FundCanna isn’t just a name
It's all we do.

Cannabis loans by FundCanna

Marijuana Vendor Financing helps smooth out cash flow and bridge the gap between liabilities and revenue by financing your accounts payable.  FundCanna will pay your 3rd party vendors directly and provide comfortable repayment terms.

Our Cannabis Working Capital solution is non-dilutive cash that can be used for any purpose.  Money is sent directly to your operating bank account within 24 hours. Terms are flexible and predictable.

Our Cannabis Working Capital solution is non-dilutive cash that can be used for any purpose.  Money is sent directly to your operating bank account within 24 hours.  Terms are flexible and predictable.

working capital loans for cannabis companies

Lease or purchase new or used equipment for your business with our Cannabis Equipment Financing solution.  Preserve cash while utilizing revenue-generating equipment to meet business demands.

Cannabis Dispensary Loans are used by financing inventory needed to keep shelves stocked and customers happy.  Make small manageable payments while you sell through product.  Increased purchasing power may lead to bulk buying discounts.

Cannabis Dispensary Loans are used by financing inventory needed to keep shelves stocked and customers happy.  Make small manageable payments while you sell through product.  Increased purchasing power may lead to bulk buying discounts.

Our Working Capital solution operates like a Line of Credit. It allows you to draw funds, make repayments and replenish available credit.  Only pay interest on funds drawn.

Our Cannabis Inventory Financing is an asset-based loan.  The process is simple. We provide you cash based on a percentage of your inventory value.  That inventory is used as collateral for the loan.

Our Cannabis Inventory Financing is an asset-based loan.  The process is simple. We provide you cash based on a percentage of your inventory value.  That inventory is used as collateral for the loan.


Fill out the form below and have access to the capital you need in as little as 24 hours.

fundcanna 3 step process

It is no surprise to cannabis business owners when we say they have a difficult job. Navigating a semi-legal marijuana business is complicated for various reasons, with federal regulations often the root cause. 

That base of the pain point creates waves of high hurdles for marijuana ventures seeking business financing. Every move must be meticulously executed, from securing licenses to purchasing real estate to staying compliant.

Failure to do so could lead to an unfunded company unable to survive in the currently saturated marketplace.

With access to traditional financing largely cut-off, cannabis operators and their businesses face complex steps ahead. 

Despite the industry growing into a multi-billion dollar market, many companies can barely keep the lights on, much less secure a bank account. Without critical capital, cannabis companies can falter under crippling costs of operation. With numerous essential aspects of business unable to be written off, including staff pay, operators often find themselves hoping to tread water rather than thrive. In many cases, if they aren't in the red, it's a win in today's market.  

 

Thankfully private banks and other alternative options do exist and are incrementally on the rise--offering a solution to thousands of aspiring and already prospering cannabis businesses. 

Despite the industry growing into a multi-billion dollar market, many companies can barely keep the lights on, much less secure a bank account. Without critical capital, cannabis companies can falter under crippling costs of operation. With numerous essential aspects of business unable to be written off, including staff pay, operators often find themselves hoping to tread water rather than thrive. In many cases, if they aren't in the red, it's a win in today's market.  

 

Thankfully private banks and other alternative options do exist and are incrementally on the rise--offering a solution to thousands of aspiring and already prospering cannabis businesses. 

Cannabis Business Financing Solutions

With federal regulations limiting financing options, cannabis operators may be banging their heads in search of a cash advance, line of credit, real estate loan or other traditional funding choices. This circumstance will likely remain the case until federal regulations pass, be it outright legalization or some banking or tax code reform.

The current situation makes cannabis financing options much more complicated and complex than other sectors.

Business owners seeking a line of credit, small business loans and additional types of business financing have all been turned away due to America's ongoing prohibition on the federal level. 

 

You could direct frustrations at the financial institutions. Still, they face a high risk in their own right. If a bank opts to work with cannabis companies, they could lose crucial Federal Deposit Insurance Corporation (FDIC) insurance coverage. As such, most cannabis companies won't find financing solutions through traditional FDIC-insured banks. 

Some of the more common cannabis financing options offered today include:

Loans

Loans finance various types of cannabis ventures, including dispensaries, grow ops, manufacturers, and just about any other emerging sector in the cannabis space. Loans can be available to a borrower, plant-touching or ancillary. Companies often seek loans to cover various operational costs associated with the business. They include:

 

  • Starting the business 
  • Obtaining working capital
  • Acquiring real estate
  • Purchasing equipment
  • Hiring staff
canna financing

 

Investors

Venture capitalists and angel investors both present funding options. Remember that these lucrative backers will ask for equity, interest on the investment within a certain period, or both in exchange for their investment.

Sale-Leasebacks

Sale-leaseback deals emerged in recent years after the cannabis market experienced the effects of a bear market. To obtain capital and free themselves of property burdens, many leading multi-state operators (MSOs) and other significant players sold real estate holdings to companies like real estate investment trusts, with the property leased back to the seller to continue operations. The move has helped MSOs streamline market focus while providing working capital.

Home Equity

Loans borrowing against your home is often considered high risk. However, many operators have found success obtaining a line of credit through a home equity loan. While challenging, a home equity loan typically allows the lendee to qualify using a lower criteria threshold. A home equity loan typically offers a higher loan limit with lower interest rates over a longer payment window if approved.

Friends and Family

Cannabis has always been a grassroots movement. Friends and family fundraising may be the closest example of a business embracing that communal spirit. Friends and family can work well for early-stage ventures or those looking to keep clear of larger financial options. A built-in support network can help fast-track funds without the due diligence of a bank or other lender. However, the risk of losing the investment of your inner circle can weigh heavily on operators and investors. 

Crowdfunding Platforms

Cannabis ventures have found success with various platforms, including Indiegogo and Kickstarter. The effort tends to work best with a more robust support network but can also work in other forms. This group can come from friends and family but will likely include a reasonable degree of time spent on digital marketing and public relations efforts to get the word further out. Depending on the platform, partially funded campaigns may receive funds, but some will restrict access to only campaign goals reached.

Qualifying For Success

No route is guaranteed to lead to successful fundraising.

The results hinge on the applicant, the financial institution, the market and the data. Providing potential lenders, investors, etc., with a transparent company overview is the foundation to success.

Show Legitimacy

The cannabis industry continues to contend with the unlicensed market in major state markets. Before a lender signs off, they want to ensure that the company is state-licensed and compliant. If you plan on using the loans to start your venture, be prepared to show that you are eligible to receive a license if one isn't already secured.

 

Without a license, you'll need to provide several proofs of eligibility, including a business plan demonstrating how the company can launch and repay the loan over time.

Show Legitimacy

The cannabis industry continues to contend with the unlicensed market in major state markets. Before a lender signs off, they want to ensure that the company is state-licensed and compliant. If you plan on using the loans to start your venture, be prepared to show that you are eligible to receive a license if one isn't already secured.

 

Without a license, you'll need to provide several proofs of eligibility, including a business plan demonstrating how the company can launch and repay the loan over time.

Gather Your Documentation

This is the stage of the process where you get your ducks in a row. Make the process smoother for yourself and potential funding partners by having all the needed information ready. Preferences can differ, but typically, you'll want to have the following ready when beginning your fundraising endeavor:

 

  • Completed application
  • Executive summary of the loan requested and its use
  • Business deck 
  • Debt schedule
  • Proof of identification (Driver's license, passport, etc.)
  • Months of business bank statements (6 or more)
  • Year-to-Date and five-year proof and loss sheets
  • Months of personal bank statements (6 or more)

Additional company documents may be requested depending on the loan type. The institution will typically ask companies to provide data related to specific loan functions. For example, companies seeking an account receivables loan will have to present an AR report. Investor lists will be required for an inventory-focused loan, and similarly so for other business loans.

Cannabis Business Funding
Becoming More Accessible

The cannabis industry is beginning to see long-needed financing solutions.

Cannabis companies still don't have it easy, but financing is possible.

Whether through small business loans, investors, friends and family or otherwise, cannabis business funding options are on the rise. With hope, federal reform will come soon enough, opening the door for FDIC-insured financial establishments to finally become involved at an adequate level. 

Cannabis loans by FundCanna

FundCanna is proud to do its part by providing the marijuana industry the line of credit it needs to reach its potential. 

 

We deliver funds to companies in short order, with some companies qualifying in as little as 24 hours. With the funds in hand, companies can scale, brand and deliver on the plant-touching or ancillary services the market clamors for.

Get the funding you need. FAST.

Approvals in as little as 24 hours

Cannabis Business Loans