Dispensary Loans: Get Funding Up to $5M

How To Finance a Medical Cannabis Dispensary

Whether you're looking to start a new venture to capitalize on the growing legalization of cannabis or need working capital to run an existing cannabis company or startup better, we can help cannabis business owners and entrepreneurs secure the funding they need.

Clarify's mission is to help business owners pursue the American dream. As opposed to lending through traditional banks, our network of more than 75 private lenders can set your dispensary or cannabis business up for success and meet growing demand.

The process of securing a cannabis business loan couldn't be simpler. Applying online takes less than two minutes. Your dedicated Clarify adviser then guides you with available options based on your credit score and time in business. In many cases, we can get business owners the funding they need in 24–48 hours.

Common Ways To Use Your Business Funding

Navigating the cannabis business world can be complex, but securing the right funding can pave the way for success. Whether you're keen on expanding your cultivation space, enhancing your store's appeal, diversifying your product range, or ensuring you're compliant with all regulations, a cannabis business loan is the tool to help you achieve these goals. Dive into these five ways a business loan can be a game-changer for your cannabis venture:

Grow your growing space. A cannabis business loan can help you grow more. Whether you're buying more land, making your current place bigger, or getting new tools, a loan can help.

Start or fix up your store. Your store is where you meet your customers. Use a loan to open a new store or make your current store better. This can mean a nicer design, better security, or faster checkouts.

Get the word out. In a busy market, you want to stand out. A loan can help pay for ads, fancy packaging, or other ways to make your brand special. It's all about getting more customers and keeping them.

Offer more types of products. Customers want more than just dried cannabis. They like edibles, oils, and other things. With a loan, you can try making new products that customers will love.

Stay on the right side of state and federal laws. The rules for selling cannabis can be tricky. A loan can help you pay for the licenses you need or hire experts to make sure you're doing everything right. This way, you avoid big fines or other problems.

Minimum Qualifications

Here are the basic requirements to qualify for a dispensary loan. Even if you have bad credit, your Clarify advisor will guide you through it.

Over $10,000/month in gross sales

Your dispensary must be earning at least $10K per month in a business bank account.

Over 500 credit score

Your dispensary can get approved with any FICO score. But the higher your score, the better the deals from our lending partners.

Over 1 year in business

Your dispensary should be operational for at least 1 year. This shows lenders that your business is sustainable and won't default on the business loan.

Have a business bank account

Your Clarify advisor will need four months of your most recent bank statements. This is just to verify that your income is over $10K/month.

Start Application

Loan Options for Cannabis Dispensaries

Let's look at the best cannabis business 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 unique needs of your cannabis business.

Here are some common cannabis financing loan programs with flexible terms you can apply for through Clarify Capital.

Short-Term Loans

One of the most common business lending 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.

Apply for a Short-Term Loan

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.

Apply for a Business Line of Credit

Equipment Loans

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 acquired cannabis equipment is collateral for the loan.

Apply for Equipment Financing

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.

Apply for Merchant Cash Advance

Note: Clarify Capital works with compliant lenders that understand the cannabis industry and state-level regulations. Your information is kept confidential and shared only with established financing partners experienced in cannabis business lending.

Get Funding for Your Dispensary

Running a cannabis dispensary requires access to reliable capital and lenders that understand the industry. Clarify Capital connects dispensary owners with compliant financing options tailored to their state, business stage, and funding goals. From working capital to equipment and expansion financing, our advisers help you navigate your options with clarity and confidence.

Grow your cannabis business by applying online today, or schedule a free consultation to discuss your dispensary's financing needs and explore the best funding solutions available.

Types of Business Loans for Dispensaries

Here are the most common funding solutions for cannabis business owners. Your loan advisor at Clarify will guide you through all options that make sense for your specific business needs.

Cannabis Dispensary Loan FAQs

Here are answers to common questions about cannabis dispensary loans.

Can Cannabis Dispensaries Get SBA Loans?

Companies considered “Direct Cannabis Businesses” (cultivators, dispensaries, and processors) aren't eligible for SBA loans.

Is Collateral Required for Cannabis Dispensary Loans?

Collateral requirements depend on whether the loan is secured or unsecured. Many cannabis business loans are unsecured and don't require collateral, especially for working capital or short-term financing. Some loan types, such as equipment financing or real estate loans, may use the equipment or property itself as collateral. Requirements vary by lender and loan product.

Are Cannabis Business Loans Legal Everywhere?

While cannabis is legal in certain states, it remains illegal federally in the U.S. It's essential to check state-specific regulations and ensure your business is compliant before seeking a loan.

How Do Lenders Determine Eligibility for a Cannabis Business Loan?

Eligibility is based on several factors, including state laws on cannabis, your business plan, financial health, credit history, and the proposed use of funds.

Are Interest Rates Higher for Cannabis Business Loans Compared To Other Loans?

Given the unique regulatory environment and risks associated with the cannabis industry, interest rates might be higher than conventional loans. Rates will vary by lender and applicant's qualifications.

Can a Startup Dispensary Get Financing?

Yes, startup dispensaries (that are at least 6 months old) can still qualify for financing through alternative lenders. While startups may face stricter terms, funding is often available with a solid business plan, proper licensing, and proof of compliance. Clarify Capital works with lenders that consider newer dispensaries, even when traditional financing isn't an option.

How Are Dispensary Loans Different From Traditional Business Loans?

Marijuana dispensary loans often come with higher rates or additional requirements because cannabis remains illegal at the federal level, which increases lender risk. Many traditional financial service providers won't lend to cannabis businesses at all.

That said, private and alternative lenders that work with Clarify Capital understand the industry and structure financing specifically for dispensaries, taking state compliance, revenue, and operations into account.