Cannabis Working Capital
Sometimes you need a bridge to get to the other side
FundCanna can provide the working capital you need to succeed
The cannabis industry has made incredible strides in recent times. We see it every time a new state legalizes marijuana. And yet, as every cannabis business owner will tell you, there’s still a long way to go. Until marijuana is legalized on the federal level, it can be difficult to find a line of credit or business loan. Traditional financial institutions are shying away from lending to cannabis companies, making it hard to find the working capital and purchasing power you need to succeed.
That’s where we come in. FundCanna specializes in a wide range of financing solutions for marijuana businesses: cash advances, equipment financing, inventory financing, and more. We can help you free up cash flow so your business can GO!
Applying for Cannabis Working Capital 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 Working Capital solution is right for you
How Cannabis Working Capital Works
Cannabis Brand wants to launch a marketing campaign to bring more awareness to the products they offer and attract more consumers to purchase their products at their retail partner locations.
Cannabis Brand submits documents to FundCanna. FundCanna pays Cannabis Brand within 24 hours.
Cannabis Brand now has the necessary funds to launch a robust marketing campaign.
Cannabis Brand makes payments to FundCanna and pays off their loan with favorable terms.
How Cannabis Working Capital Works
Cannabis Brand wants to launch a marketing campaign to bring more awareness to the products they offer and attract more consumers to purchase their products at their retail partner locations.
Cannabis Brand submits documents to FundCanna. FundCanna pays Cannabis Brand within 24 hours.
Cannabis Brand now has the necessary funds to launch a robust marketing campaign.
Cannabis Brand makes payments to FundCanna and pays off their loan with favorable terms.
Cannabis Working Capital FAQ's
Companies use working capital as a bridge to reach the next phase of their business growth plan.
Working capital provides cannabis brands with the funds to invest in critical business necessities.
From stocking the supply room to launching a marketing endeavor, working capital can help brands reach their next level.
This type of non-dilutive cash loan provides brands with the cash-on-hand to fund
day-to-day operations and short-term expenses, including:
- Staff payroll
- Inventory purchases
- Rent
- Cash flow gaps and much more
While working capital is worthwhile for many business endeavors, it isn’t ideal for more significant projects, such as real estate purchases. Don’t worry, we have solutions for them too.
With the cannabis market growing, brands need financial solutions to support their growth plans, just like any other business. Unfortunately, due to ongoing federal laws in the US, many traditional lenders steer clear of the booming nascent market.
That’s where FundCanna comes in.
Working capital finances business growth
This type of non-dilutive cash loan provides brands with the cash-on-hand to fund
day-to-day operations and short-term expenses, including:
- Staff payroll
- Inventory purchases
- Rent
- Cash flow gaps and much more
While working capital is worthwhile for many business endeavors, it isn’t ideal for more significant projects, such as real estate purchases. Don’t worry, we have solutions for them too.
With the cannabis market growing, brands need financial solutions to support their growth plans, just like any other business. Unfortunately, due to ongoing federal laws in the US, many traditional lenders steer clear of the booming nascent market.
That’s where FundCanna comes in.
How Working Capital Helps
Companies use working capital as a bridge to reach the next phase of their business growth plan.
Working capital provides cannabis brands with the funds to invest in critical business necessities.
From stocking the supply room to launching a marketing endeavor, working capital can help brands reach their next level.
Consider just some of the possibilities:
Marketing
Federal cannabis regulations hinder businesses in more ways than just limited financial access. Currently, most cannabis brands cannot advertise on traditional digital advertising platforms, including paid Google ads and promoted social media posts. Even when not using paid social media, accounts often risk suspensions or deletions from particular platforms for violating terms of services related to pot content.
The marketing limitations and constant account concerns leave numerous cannabis brands considering alternative marketing measures. Some creative ideas include:
- Print ads
- Billboards
- Flyers
- Merch
- Celebrity sponsorships
- Clothing
- Radio/podcast ads
- Live events and many more
Each endeavor costs money, with some racking up significantly higher prices than standard digital ad spends. Unable to write off the expenses, cannabis brands have little margin of error when producing a return on marketing investments.
With a working capital loan, cannabis companies can obtain more financial wiggle room. Using these funds, companies can invest in the marketing endeavors that help them stand out to consumers–without worrying about overeating into the bottom line.
Property Rent
A working capital loan is ideal for a short-term endeavor like property rent.
Rent has always been a prime concern for any business. That worry has only grown in recent years as property costs surge and likely won't let up for some time.
Leasing space is one of the more substantial expenses that can set any company back. Federally legal industries can at least write off their rent costs. That isn't the case in cannabis. Making matters worse for many pot proprietors, some states require having an established property to qualify for a retail license. If that applies to you, your business is on the hook for rent long before making a sale.
How can a cannabis company thrive or even survive under these conditions? A working capital loan is one solution. With cash on hand in less than 24 hours after approval, pot brands like yours can cover rent costs without losing sight of any parts of the business.
Payroll
Paying staff and contractors is essential for any company. Missing payments can result in strained relationships and a negative market reputation.
Even the most well-intentioned operators can sometimes miss payment deadlines. You may make an error and forget a pay deadline. But more often than not, companies struggle to pay bills on time because their clients aren't paying them on time. It's a vicious cycle that benefits no one.
The effects can be substantial regardless of the reason for the payment delay. One of the most adverse effects of the situation is stalled business growth. A company without funds can’t pay for new endeavors or the people to make them happen.
Don’t let your clients' late payments make you delinquent with staff and subcontractors. Working capital loans provide payroll solutions that allow businesses to stay on schedule with their financial commitments even when partners may not be as prompt. And with fair repayment terms, you don't have to sweat making payments until your clients do so.
Inventory
Inventory is critical to company growth. Consumers and partner brands will turn elsewhere without the needed products to satisfy market demand. This potential outcome is a concern for countless startups. Cannabis, in particular, faces this concern. With inventory costs typically high, and write-offs impossible due to federal regulations, it's no wonder companies can struggle early and often in the cannabis market.
Don’t let cash flow concerns stall your company growth. Working capital loans allow companies to make the necessary purchases, ensuring that sales shelves stay stocked with the cannabis products consumers want. With the cash available to purchase popular products, your pot brand can continue to keep sales shelves full--that is, until your customers buy you out once again!
With cash reaching you within 24 hours of approval, your company doesn’t have to skip a beat.
Trouble Obtaining Working Capital
Cannabis is rapidly becoming one of the largest markets in the US and worldwide. However, stateside brands continue to face struggles unheard of in most major markets. The most common reasons for the additional hurdles include the following:
Federal and Local Restrictions
Even though the cannabis market has surged and shows promise for much more, it remains illegal in the eyes of the US government. Until the regulatory status quo changes, cannabis operators will continue to face roadblocks and hurdles unheard of in other markets. While funding is more difficult in cannabis, reaching your financial goals is still achievable.
Obtaining funding remains an overblown challenge. Despite pathways to work with cannabis companies, most traditional lenders prefer not to work with the industry over possible consequences. Until the laws change, most financial institutions will tend to operate with higher levels of caution than usual–even towards sectors that have seen recent reform. Reports often state that financing woes extend to the hemp industry, despite the passage of the 2018 Farm Bill.
The reluctance from traditional lenders leads many to assume that financial solutions aren’t available to cannabis companies. However, that is inaccurate. Cannabis companies can obtain financial solutions, and traditional lenders can service the space if it complies and conducts more thorough due diligence.
The process may be a bit more laborious, but it is possible. FundCanna is here to demonstrate how attainable it is, even when traditional lenders still say no.
Cash-Only Businesses
Cannabis brands typically cannot use any form of credit and debit payments. Select dispensaries have implemented crypto payments and debit-cashback type options. But for most, transactions remain strictly in cash.
This scenario creates a few critical concerns.
The scenario is a turn-off to most lenders. Cash-only businesses are typically considered more difficult clients to financial institutions. The distinction is often attributed to the struggles banks and lenders have when assessing a company's financial health without bank statements and credit scores.
While many would want to press traditional lenders and banks to do more, lenders face potential substantial consequences, including:
- Lost investments if a cannabis client defaults
- Possible federal intervention
- Loss of traditional clients due to ongoing cannabis stigmas, or fears of federal intervention affecting their business
High-Risk Industry
Because of federal regulations keeping cannabis in a quasi-legal state, banks will continue to consider cannabis high risk for various reasons.
There is hope that change could come from crucial pieces of proposed legislation like the SAFE Banking Act. However, for the time being, at least, the status quo remains in effect.
Under the current circumstances, cannabis companies often handle cash themselves or through a third-party financial security solution. These solutions work in some cases but leave cannabis brands with substantial targets on their backs for crime and violence.
Criminals know that cannabis dispensaries and other facilities house thousands to millions of dollars in assets and cash. This knowledge leaves cannabis brands more vulnerable to break-ins and robberies, exposing personnel and pot products to risk of theft, robberies and graver outcomes in some situations.
Pot's current federal status leaves cannabis brands hard-pressed for financial options as banks still consider the industry a high risk. While possible to find financial solutions, numerous companies struggle to fund short-term goals, pay staff and keep the lights on. With FundCanna, your brand doesn't have to worry.
FundCanna believes every qualified licensed cannabis brand
should have access to working capital, regardless of jurisdiction.
Here’s how it’s done:
- Set a Goal: Your cannabis company sets an operational or short-term goal, from funding payroll to launching your seasonal marketing endeavor. Determine the plan, how much it’ll cost and what you need to succeed.
- Gather Your Documents, Then Contact FundCanna: Gather all the information possible to showcase what your company is currently working with. Once you’re ready to apply for a working capital loan, send FundCanna all the needed documents. Expect an answer in as little as 24 hours.
Need help determining which solution is best for your company? Contact us to learn more!
- Get Approved, Receive Working Capital: We know that time is money. Once approved, expect to receive your funds in under 24 hours. Launch your next plan without skipping a beat.
- Pay FundCanna Back On Agreeable Terms: Pay back your loan with clear, favorable terms.
Get the funding you need. FAST.
Approvals in as little as 24 hours
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