How Rescheduling Cannabis Affects Your Money
How Rescheduling Cannabis Affects Your Money
Working with FundCanna means more than just access to capital, it means having a partner that does not tell you what to do or how to do it but is constantly studying the industry and its needs.
We have financial and legal representation that is working to be at the forefront of everything happening in Washington D.C. and in all 50 states.
We will be in Washington D.C. this month(May 14-16), meeting with lawmakers personally to discuss the opportunities that exist for the citizens they represent and discussing the logic for acceptance and movement beyond Rescheduling.
In the interim, some thoughts about what Rescheduling could mean for Cannabis, you and your business…
Working with FundCanna means more than just access to capital, it means having a partner that does not tell you what to do or how to do it but is constantly studying the industry and its needs.
We have financial and legal representation that is working to be at the forefront of everything happening in Washington D.C. and in all 50 states.
We will be in Washington D.C. this month(May 14-16), meeting with lawmakers personally to discuss the opportunities that exist for the citizens they represent and discussing the logic for acceptance and movement beyond Rescheduling.
In the interim, some thoughts about what Rescheduling could mean for Cannabis, you and your business…
Rescheduling cannabis could potentially bring
several financial benefits to Cannabis Businesses:
Tax Benefits/Abolishing 280E
Cannabis businesses currently face significant tax burdens due to the federal government's treatment of cannabis as a Schedule I substance.
Rescheduling would likely allow cannabis businesses to take advantage of tax deductions and credits that are currently unavailable to them, resulting in lower effective tax rates and increased profitability.
This could free up as much as 40% of a Cannabis operations revenue as free cash flow.*
Further Access to Traditional
Banking Services
While Cannabis businesses have access to nearly 900 deposit institutions, that still leaves over 14,000 banks that will not work with Cannabis.
Some portion of these banks will likely enter the space opening up choice, increased service levels and lower cost of banking.
This may improve transparency and facilitate business growth.
Increased Investment Opportunities
Rescheduling could attract more institutional investors, including banks, venture capital firms and private equity funds, to the cannabis industry.
With greater access to equity capital, we would likely see more M&A activity and we would see younger businesses and license holders get off the ground at a greater pace.
Economic Growth
The cannabis industry has the potential to become a significant driver of economic growth, creating jobs and generating tax revenue from increased sales and payroll.
Rescheduling could accelerate this growth by removing barriers to entry and facilitating investment and expansion within the industry.
Contrary to many opinions, Rescheduling or even De-Scheduling
would likely NOT lead to more widely available bank borrowing.
Traditional businesses outside of Cannabis like Retail, Restaurants, Manufacturers, Contractors and others are only approved at a rate of 20-25% by the 15,000 banks that service them as depositors.
Why would this industry see an approval rate higher than traditional business?
It won’t. We will remain a “vice” industry even once fully legal.
However, FundCanna is funding the space now with no hidden fees,
no warrants and an approval rate of over 71%.
We have approved nearly $275 million across all verticals and in all 50 states
including Plant Touching THC, CBD/Hemp and Ancillary providers.
Borrowing money into the rescheduling process could benefit cannabis businesses in several ways:
Competitive Advantage
Access to capital during the rescheduling process could give cannabis businesses a competitive advantage by allowing them to grow their business ahead of the change.
Using additional funding to invest in expansion, more product, additional canopy, infrastructure, technology and talent ahead of competitors who may struggle to secure financing.
Expansion & Growth
Borrowing money during the rescheduling process could provide cannabis businesses with the capital needed to expand doors/operations and enter new markets.
This could help businesses position themselves for success in a rapidly evolving industry and ahead of the rush once Rescheduling passes.
Compliance & Regulatory Costs
Rescheduling cannabis may come with regulatory requirements and compliance costs.
Borrowing money could help businesses cover these expenses while navigating the transition to a new regulatory environment.
Leverage and/or Risk Management
Borrowing money can also be a form of leverage, using outside capital to get yield or as a tool for risk management for cannabis businesses.
By leveraging debt, businesses can do more while preserving cash reserves for unexpected expenses or unknown future opportunities while still pursuing growth opportunities.
Overall, borrowing money into the rescheduling process can provide cannabis businesses with the financial resources needed to thrive in an evolving regulatory landscape and capitalize on the opportunities presented by a potential rescheduling of cannabis.
Our average client has grown 54% within their first year of working with us. Yes, really.
There is no obligation or cost to explore your funding options with FundCanna. What are you waiting for?
Get the working capital you need. Fast.
Approvals in as little as 24 hours
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