Loan Options for Cannabis Dispensaries
Let’s look at the best financing options for cannabis dispensaries and cannabis-related businesses. While these types of loans differ from what you might find from financial institutions for things like commercial real estate loans, they’re critical business funding options to meet more immediate business needs common in the marijuana industry.
When you apply for a loan through Clarify, your dedicated financial adviser will guide you through the online application process. Our goal is to provide funding that fits the specific needs of your cannabis business.
One of the most common business financing options is the term loan. A short-term loan is similar to financing you’d receive from a bank or credit union. You borrow a specific amount of capital at a specified APR and repayment terms and receive a lump sum for your business. The duration of the loan term can be flexible based on your needs as a borrower. This type of small business loan can be especially useful for cannabis entrepreneurs looking to launch a new cannabis product, such as marketing a new CBD or launching a campaign.
Business Lines of Credit
Business lines of credit are an excellent cannabis financing solution to give your marijuana business quick access to funds without the higher interest rates of options like a business credit card. You only pay interest on funds you use from the available credit line.
Equipment is essential for your cannabis business to operate at its full potential. Whether buying new equipment or paying to repair equipment, equipment financing can be your best option. In the case of equipment loans, the equipment is collateral for the loan.
Merchant Cash Advance
If you need instant access to a lump sum in your business bank account, a merchant cash advance (MCA) is an excellent option. Especially with the fluctuations of the cannabis industry and supply chain, an MCA can bridge cash flow gaps, weather a fluctuation in revenue, or cover an unexpected business expense.
Cannabis Dispensary Loan FAQ
Can Cannabis Dispensaries Get SBA Loans?
Companies considered “Direct Cannabis Businesses” (cultivators, dispensaries, and processors) aren’t eligible for SBA loans as of 2021.
Is Collateral Required for Cannabis Dispensary Loans?
Collateral requirements depend on whether the loan is secured or unsecured. Many loan options don’t require collateral or a personal guarantee. Some funding types, like equipment financing, allow you to use the equipment as collateral.