Loans, Financing, And Capital For Cannabis Delivery Services
Over a dozen states let licensed cannabis dispensaries deliver products to their customers. As of mid-2021, even more states are considering making changes to their laws to allow cannabis delivery. The coronavirus pandemic made it clear that more businesses needed home-delivery options. Plenty of states loosened their alcohol laws to permit delivery and carryout. Others realized that delivery would help dispensaries survive public lockdowns.
Entering the delivery side of the cannabis industry isn’t as always as simple as it sounds. You can’t just ask one of your employees to drive a package to a customer’s house. Several expenses go into the transition.
If you want to add hemp and cannabis delivery to your store’s list of services, you might need to get a loan that helps you pay for the expansion.
Why Consumers Need Hemp and Cannabis Delivery Services
Some people would argue that consumers do not need hemp and cannabis delivery services. After all, more than 50 percent of people say that they prefer delivery because it’s “convenient.”
That perspective doesn’t tell the whole story, though. Nearly a third of California’s cannabis users say that they prefer delivery because of its “safety.” In this context, “safety” probably means avoiding public spaces where they could encounter people carrying a highly contagious virus.
Even after the pandemic, though, some cannabis users will consider it safer to choose delivery. If the closest cannabis storefront is in a high-crime area, for example, they may want to avoid the location. Delivery also lowers the risk that inebriated people will drive to dispensaries to purchase cannabis.
Most importantly, hemp and cannabis delivery services benefit patients who use the products for health-related issues. Someone living with nerve pain, for example, may not have the ability to visit a dispensary to purchase cannabis that will offer some relief. Similarly, someone undergoing cancer treatment might not have the strength to go to a store and buy the cannabis needed to spark their appetite.
When you consider the diverse needs of hemp and cannabis users, delivery services become more necessary than convenient.
Grow Your Business With Hemp and Cannabis Delivery Services
From a business perspective, delivery also opens new opportunities to make money. Cannabis use has lost most of its stigma over the last few decades. Still, some people who rely on cannabis for health reasons and enjoyment feel uncomfortable letting others know that they use the products that contain THC, CBD, and similar chemical compounds.
A lawyer or accountant, for example, may hesitate to visit a dispensary because they work for a firm that has a negative view of cannabis use. They might choose to purchase products illegally to avoid appearing in public with cannabis. Interacting with black market cannabis dealers puts them in danger of encountering violence and purchasing adulterated products.
With hemp and cannabis delivery services, dispensaries can sell safe products directly to people who feel squeamish about going to the store.
It’s a win-win for the consumer and the business. The business gets to increase its revenues and the consumer gains access to a desirable product.
Expenses to Expect When You Start Delivering Hemp and Cannabis Products
Why would you need a loan to start delivering cannabis? After all, the service makes it easier for stores to sell to more people. That should quickly cover the cost of hiring a delivery driver.
In reality, the costs often include:
- Buying a vehicle or multiple vehicles to make the deliveries.
- Purchasing expensive insurance policies that cover vehicles used for business purposes.
- Upgrading vehicle security to protect the driver and products during delivery (a small vault in a van, for example, can make it nearly impossible for a robber to steal products).
Over time, hemp and cannabis stores should recoup their expenses and start earning higher profits. Paying for vehicles, insurance, and security upfront, however, will put a significant financial strain on any business.
Loans and financing for hemp and cannabis delivery services eliminate that problem. Instead of feeling the adverse effect of upfront costs, you can use your loan to spread out the cost over several months or years.
Start Delivering Now With Help From 420 Loans
Cannabis and hemp delivery services will likely become legal in more states soon. Because of this, many business owners will not know how to secure the financing they need to enter the competitive market.
420 Loans makes it much easier for you to find and compare loans that will cover your upfront costs. Fill out an initial inquiry to get the process started. One of our consultants will contact you shortly to discuss your needs and how to cover the costs of expanding your cannabis business.
If you need help filling out applications, our consultants will walk you through each step to make sure you provide accurate information that improves your chances of getting an affordable interest rate. Our consultants have years of experience working in the industry, so they know what private lenders want to see on your application.
Don’t let money prevent you from starting a cannabis and hemp delivery service. That only gives your competitors time to take your customers and become more dominant in your local market. Instead, apply for a private loan that will make your business the go-to source for cannabis and hemp delivery.