Historically, it’s been almost impossible for companies in the cannabis and hemp industries to find real estate loan and lending opportunities.
Because cannabis is still a federally-recognized illegal substance, it’s incredibly hard for cannabis companies to secure a checking account or line of credit through major banks. This makes it difficult and, in many cases, impossible for legal marijuana businesses to expand or establish themselves.
Fortunately, though, there are other options. While it’s true that banking and finance opportunities are limited, securing funding is far from impossible.
Are There Financing Options Available for Cannabis Businesses?
Luckily, the answer to this question is yes. While commercial lending options are limited, cannabis companies can request business loans from a host of alternative financing companies.
CBD growers, cultivators, and manufacturers may also be able to access funding through crowdfunding and fundraising platforms. Additionally, some entrepreneurs may be able to self-fund from personal needs or profits from external businesses, although this is not the case for many.
For cannabis entrepreneurs who need to seek external funds, there are a few cannabis-specific debt and equity financing resources. One firm in Colorado, for example, has issued more than $27 million in loans and leases for companies specializing in cannabis products. The company has done this with the backing of a network of private investors and connections.
Will Banks Fund Cannabis Companies?
There are a few banks currently in existence, mostly small ones, that are willing to fund cannabis companies. In Colorado, for example, there are eight banks and a single credit union that will take deposits from cannabis companies.
If that option doesn’t apply, however, cannabis entrepreneurs are left to look elsewhere. Fortunately, 420Loans.com is here to fill the gap. Committed to helping companies gain access to financial resources, 420Loans.com is a go-to resource for cannabis and hemp companies looking for financial products.