There are a number of reasons why debt financing is better
than giving away equity for cannabis businesses
First, debt financing is much cheaper than giving away equity in your cannabis company. When you borrow money, you only have to pay interest on the loan. When you give away equity, you are giving up a piece of your company, forcing to share profits with your investors.
Second, debt financing allows for more control over your company. When you borrow money, you are still the owner of your company. As soon as you give away equity, you are giving up some of your control to your investor(s).
Third, debt financing is more flexible than giving up equity. With debt financing, you can borrow money for specific purposes, like expanding your business or buying new equipment. Equity on the other hand, forces you to give away a piece of your company, and your investor(s) may have a say in how you run your business moving forward.
Debt financing is a better option for cannabis companies than giving away equity. It's cheaper, gives you more control, and is more flexible.
Debt financing allows you to grow your business without giving up control. When borrowing money, you remain the owner of your company. You can use the money to expand your business, buy new equipment, or hire more employees. This will help you to grow your business without having to give up any control to investors.
Debt financing is a tax-deductible expense. When you borrow money, the interest you pay on the loan is a tax-deductible expense. This means that you can deduct the interest from your taxes, which will lower your tax bill.
Debt financing is a flexible option. With debt financing, you can choose the terms of the loan that best meet your needs. You can choose the length of the loan, the interest rate, and the monthly payment. This flexibility allows you to find a loan that fits your budget and your business goals.
When utilized properly, debt financing can be one of the greatest accelerants a cannabis business can utilize. The team at FundCanna is here to provide you the financial tools you need to scale your business faster, cheaper, and more sustainably. Contact us today!
Get the working capital you need. Fast.
Approvals in as little as 24 hours
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