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The climate is changing for the cannabis industry. Legalization is becoming more prevalent, social stigma is decreasing, and many new cannabis businesses are opening their doors.
But challenges remain.
Running a business requires funds, and cannabis companies often struggle to secure financing because of the industry’s incomplete federal legalization.
Fortunately, some organizations understand the uniqueness of this market and offer specialized loans to support weed and hemp businesses—cannabis financing companies.
To help you find the best fit, we’ve created this list of top cannabis lenders to boost your projects in the industry.
- 24-48 hour approval process
- Same day funding
- Flexibility of terms
- Early repayment discounts/Client controls term
- Up to 24 month repayment terms
- Unsecured
- Minimum sales/growth revenue of $250k per year so smaller businesses might not qualify
FundCanna is a cannabis financing company that simplifies access to capital for your cannabis business, helping you elevate your operations. They offer customized, renewable, and reliable financing solutions tailored to your needs.
With over 20 years of experience, their team provides support through:
- $5,000 to $3 million in loans
- 24-48 hour approval process
- Early repayment discounts
- No collateral requirements
- Same-day funding
Whether you’re an ancillary company, cultivator, manufacturer, or any other type of cannabis business, you can rely on FundCanna for cannabis loans and working capital.
The company follows the belief, “If it doesn’t work for you, it won’t work for us”, prioritizing flexibility of terms and placing your needs and preferences as the utmost priority.
To qualify for cannabis loans from FundCanna, your business must be legally compliant and have a minimum of six months of revenue history. You also should demonstrate annual sales or growth revenue of a minimum of $250,000.
Beyond unparalleled resources and experience, FundCanna is committed to driving the cannabis movement forward. They empower THC, CBD, and HEMP businesses to feel confident in their financial capacity for growth and success. pa
Upwise Capital
Upwise Capital was founded with the goal of financially supporting small and medium-sized companies across various sectors. As a cannabis company, you can access a range of cannabis loan options through Upwise Capital, including those for working capital, equipment financing, real estate financing, and more.
Upwise Capital’s offerings include:
- $5,000 to $20 million ($200 million for real estate) in loans
- Simple application
- Fast funding
To apply for partnering with this cannabis financing company, businesses typically must have operated for a minimum of three months, maintain a credit score of at least 500, and meet the annual revenue threshold of $250,000 or more.
Upwise Capital is all about aiding cannabis businesses through financing and contributing to a greener future in the cannabis industry.
GoKapital
GoKapital assists individuals and companies in securing the funding needed to get their dreams off the ground. To date, hundreds of borrowers have used GoKapital’s loans, spanning the cannabis industry and many others.
When partnering with GoKapital, you can expect:
- $50,000 to $5 million in loans
- No collateral required
- Phone support
To be eligible for GoKapital’s cannabis loans, your business must have been operational for more than four months, have a credit score of over 500, and prove revenue of $150,000+ annually.
Although not exclusively dedicated to the cannabis industry, GoKapital offers accessible cannabis loans and extends a much-appreciated helping hand to businesses in the weed industry.
How do you Secure Funds for Your Cannabis Business?
Here are our top three tips for securing the next funds for your business.
Find a lender that understands the cannabis market
First and foremost, you need a lender that knows the ins and outs of the cannabis industry. Opt for specialized cannabis financial companies like FundCanna or established cannabis-friendly funding organizations. These possess the necessary expertise and legal understanding to fund your projects and provide ongoing support successfully.
Improve your business’s financial health
Cannabis financing companies evaluate your company’s credit score and annual revenue to determine your creditworthiness. The best approach to ensure this assessment works in your favor is to enhance your company’s financial health—pay bills regularly, manage expenses effectively, etc. You should also create a financial plan that demonstrates to potential cannabis lenders your commitment to the long-term success of your business.
Prioritize transparency
Transparency is vital when seeking loans from cannabis financial companies. Typically, to secure funds, you’ll need to provide valid statements, financial information, legalization documentation, and other files verifying the legitimacy of your company. It’s essential to consult with the potential loan provider to know precisely what documents you need and get everything ready on time.
Benefits of Taking Cannabis Loans and Working Capital
Taking out a cannabis loan brings valuable advantages to your business:
- Access to funds
Of course, taking cannabis loans brings you finances. You can use them for various processes and projects within your business, granting you access to capital that might otherwise be inaccessible. And there’s a less tangible yet equally significant benefit—peace of mind. Knowing you have the necessary funds to cover expenses allows you to focus on creativity and innovation in your business.
- Faster growth
Acquiring a cannabis business loan accelerates your business’s growth. The additional capital can cover your startup expenses or enable you to launch or expand operations more swiftly. It can also help you upgrade your equipment, relocate your business, or undertake any other initiative that supports faster growth.
- Autonomy
Unlike obtaining loans from investors, securing loans from cannabis financing companies provides you with complete autonomy over the funds. You have full control over how you want to allocate them within your business.
What to Look for in Cannabis Financing Companies?
When deciding on a cannabis lender, consider the following aspects:
- Evaluate your budget and seek a payment schedule that aligns with your financial goals.
- Anticipate any potential hurdles you may encounter during the application and repayment.
- Select a seasoned cannabis financing company that provides proper expertise and support.
- Look for flexible terms tailored to your unique circumstances and preferences.
Partnering With Cannabis Financing Companies: The Right Way
All companies on the list are cannabis-friendly, highly reputable, and deeply passionate about the industry. Taking loans from them is a great way to fuel your business’s growth.
But, as with any agreement, it’s important to carefully review the terms of cannabis loans to ensure you fully understand all aspects. Also, ensure you partner with a lender that offers support that aligns with your specific goals and preferences.
Ready to take the next step?
Sign up with FundCanna, Upwise Capital, or GoKapital to start receiving funds for your business’s success.
FAQs
Are cannabis loans legal?
If your business operates within the state laws and you have the appropriate licensing—yes, cannabis loans are legal.
How much does a cannabis business loan cost?
The cost of a business loan varies based on factors such as the loan amount, solution type, credit score, and any other terms outlined in the loan agreement.
What’s the minimum credit score required for a cannabis loan?
Different lenders have varying criteria, but cannabis financing companies typically require a credit score of at least 500.
Efrain Sanchez
My name's Efrain and I'm the founder of Growth Logiq.
I was researching, testing and doing SEO and CRO for close to five years before going into the agency full time.
We've generated over 8 figures in online sales for our clients, partners and our own investments with SEO alone. We've worked with some of the fastest growing brands including venture backed startups and publicly traded companies.
