Cannabis & Hemp Business Loans, Line's of Credit, & Working Capital

Whether your cannabis or hemp company has been operating for years or you have plans to open it in the near future, you might not have room in your budget to purchase new equipment that can help make you more successful. Cannabis and hemp equipment loans provide the capital you need to increase crop yields, improve security, develop new products, and reach other business goals.

Since the federal government does not let banks and credit unions lend to businesses in the cannabis industry, you must turn to a private lender. The good news is that private lenders have a variety of options that will make it easier for you to purchase the equipment your cannabis or hemp business needs to evolve.

Types of Equipment Cannabis Businesses Need

The equipment you buy often depends on the type of cannabis business you own or manage. An indoor grow operation does not need the same equipment as an outdoor farm.

Before you start exploring your cannabis and hemp equipment loan options, take a few minutes to learn about the equipment you might want to buy.

Cultivation Equipment

Common types of cultivation equipment found in warehouse grow operations include:

  • Air conditioners
  • Boilers for heating
  • Dehumidifiers to maintain the correct level of moisture for your plants
  • LED lighting for various stages of the plant’s life cycle
  • Ventilation systems
  • Insect netting systems
  • Commercial dehydrators to cure cannabis flowers quickly
  • Cloning trays
  • Black-out shade systems for light deprivation
  • Trimming machines
  • Packaging machines
  • Security systems with cameras and sensors
  • Hydroponic systems
  • Closed-loop extraction systems

If you don’t already have a marijuana vault where you can store products safely, you should consider buying one to prevent theft.

Farmland Equipment

Farmland equipment tends to focus on machinery that makes difficult work easier on employees. Planting and maintaining cannabis plants requires careful attention to detail. Any equipment that makes tasks simpler is worth considering.

Some of the equipment you might want for your cannabis or hemp farm include:

  • Tractors
  • Irrigation and watering systems
  • Solar panels and batteries for powering off-grid locations
  • Security fences that help prevent trespassers and wildlife from entering your land
  • Security systems with cameras and sensors
  • Insect netting systems
  • High tunnel crop protectors
  • Grow tents
  • Greenhouses to extend the growing season

Your approach to farming cannabis and hemp will impact the equipment you choose. For the most part, though, cultivators can benefit from the above items.

Storefront Equipment

Cannabis and hemp storefronts also need equipment to secure their locations, meet regulations, and track key performance indicators (KPIs).

Some of the equipment you might need for a cannabis or hemp storefront include:

  • Vaults for securing money and high-priced products
  • Security systems that lower the risk of theft and trespassing
  • Computer systems that verify ID cards
  • Point-of-sale systems that track your sales, receipts, income, and merchandise

The cost of storefront equipment can vary significantly depending on the models you choose. Financing will help you purchase effective equipment that works very well. Many business owners prefer borrowing money with equipment loans instead of settling for low-cost equipment that doesn’t meet their expectations.

Equipment Loans for Cannabis Extraction Equipment

Cannabis extraction equipment comes at a high price. Even small systems can cost tens of thousands of dollars. Why would you invest in such an expensive piece of equipment? Because extracts will continue to play an increasingly important role in the cannabis and hemp industries.

Extracts offer a potentially healthier option than smoking flowers. Consumers may also prefer extracts because the effects last longer.

The fact of the matter is that cannabis extracts make a lot of money. Buying extraction equipment gives you a chance to enter that market.

What Can You Expect From Cannabis and Hemp Equipment Loans?

The borrowing process can feel complicated and intimidating. Working with 420 Loans will make it much easier for you to find the funding you need to reach your goals. You should also know what to expect when you start exploring your equipment loan options.

Most private lenders prefer to work with business owners who have FICO scores of 550 or higher. The better your credit rating is, the less money you can expect to spend on interest.

Most equipment loans have a $100,000 minimum and a $25 million maximum. Highly qualified borrowers, however, could access higher amounts.

Interest rates usually start at 6.99 percent. Few loans charge more than 19.99 percent.

Loan terms can range from one to seven years. Keep in mind that you will spend less money on interest by repaying the loan faster.

Find a Cannabis Equipment Loan That Meets Your Needs

Cannabis equipment often costs a lot of money. It’s one of the biggest challenges for entrepreneurs that want to enter the hemp and cannabis industry. You don’t need to delay your business interests because cannabis equipment costs a lot to purchase. A loan will help you buy the items you need to start making products and earning money as quickly as possible.

Unfortunately, you can’t rely on traditional lenders to fund your cannabis and hemp equipment. Federal law makes it very difficult for banks to work with cannabis companies, even when they operate in states with legalized cannabis. 

Find cannabis equipment loans that match your needs by filling out an application with 420 Loans. One of our experienced consultants will contact you to discuss the details of your equipment needs and lending expectations. Then, we will help you choose a loan that lets your business grow without charging you more interest and other fees than necessary.

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