Loans, Financing, And Capital For Cannabis & Hemp/CBD Distributors
Hemp and cannabis distributors play a critical role in getting products from cultivators and manufacturers to consumers. Starting a hemp and cannabis distribution company requires a lot of networking with other entrepreneurs and owners in your industry. No matter how many connections you have, though, it takes quite a bit of money to start a cannabis distribution company. Loans and financing for distributors can help you reach your business goals.
Do you need funding to start or grow your hemp & cannabis distribution company? Start exploring your options by filling out an application from Canna Business Resources. Our professionals can help you find the best option for your business.
Common Costs for Hemp and Cannabis Distributors
Distributors need cannabis loans to cover essential costs like real estate and employees. The need for security, however, is much higher for cannabis distributors than most other companies. Few criminals would target a warehouse used to store inexpensive clothes. When they know that your warehouse contains cannabis products, though, more burglars will feel tempted to break in and steal as much as possible.
Loans and financing for hemp and cannabis distributors can help you pay for security professionals and safe storage space until your company earns enough revenue to pay these costs on its own.
You can also use hemp and cannabis loans to grow an existing distribution business. Expanding the size of your fleet and warehouse could help you fill orders for more retail stores and medical cannabis dispensaries.
Discrete, High-Security Storage Space
Your cannabis loan can help you pay for a discrete, high-security storage space that will not attract attention. Ideally, you want to store your cannabis products in a place where no one will notice. That could mean purchasing a warehouse on the outskirts of town or using signage that misdirects anyone who would show interest in your business.
You can never ensure that your storage space will remain secret, so you need a stellar security system to deter thieves. The most effective cameras, sensors, and alarms don’t come cheap, so you might need a cannabis loan to help you cover the cost. You will save money in the long run by protecting your products from theft.
You also need to ensure secure transportation while you pick up and deliver hemp and cannabis products. An armored vehicle makes the best option for large cannabis distributors. They cost a lot of money, though, so many distributors start with fortified, nondescript vans that blend in with other traffic.
Even without an armored vehicle, you might choose to install additional security to your delivery truck or van. Something as simple as a locked cage will slow down would-be robbers while your driver waits for the police to arrive.
Well-Trained Employees, Including Security Guards and Drivers
As a hemp and cannabis distribution business, you will need to trust your employees to guard valuable products. One delivery to a retail store could include thousands of dollars in cannabis and cannabis products.
Well-trained security guards and drivers will know how to identify threats, evade danger, and keep your products safe.
You will also need to pay your distribution employees well. A high income and excellent benefits make it less likely that they will feel tempted to steal from your business.
Licensing, Insurance, and Taxes
Cannabis distributors need state licenses before they can start moving products from cultivators to retail stores. Depending on your location, getting a license can cost well over $10,000.
On top of your license, you will need insurance for your real estate, vehicles, and inventory.
Don’t forget the significant cut that the government takes from your profits.
A low-interest cannabis loan makes it easier for you to afford these expenses while you grow your business.
What to Expect From Hemp and Cannabis Lenders
You cannot turn to a bank or credit union for cannabis business loans. Federal laws make it nearly impossible for traditional banks to work with legal cannabis distributors. Private lenders, however, can step in to fill the role.
Private hemp and cannabis lenders give you opportunities to pay for the essential real estate, security equipment, vehicles, and employees that you need to grow a successful distribution company.
The process for getting a business loan from a private group looks much like the process for getting a typical business loan. You need to provide some information that helps the lenders determine whether they want to accept you as a client and what type of loan they can offer.
By using Canna Business Resources, you make every step easier. We can even offer consultations that will help make your application more appealing to private lenders with competitive interest rates.
Start or Grow Your Business With Help From Canna Business Resources!
Whether you already have a distribution business that you want to grow or you have an idea you believe will benefit the cannabis and hemp industry, you need a business loan to fund your goals.
Start your search by filling out an application from Canna Business Resources. One of our consultants will contact you to discuss your lending and financing options.