Sure, many entrepreneurs have innovative ideas of how to improve their business, bolster sales or dream of being able to expand. If they don’t have the capital to do it on their own they can turn to a bank for a loan or apply for a small business loan.
But if you’re in the cannabis industry that is just not an option.
The cannabis industry is growing and changing rapidly and business owners wanting or needing to expand or purchase a new piece of equipment are more desperate than a “regular” business owner. Maybe you’re a cultivator that would like to start doing your own extractions and you need new equipment. Maybe you have retail dispensary but are tired of shortages in inventory or just want to have more control over your own product. You need land so you can cultivate your own product. Maybe you need to install brand new tracking software.
Generally, traditional banks have stringent underwriting guidelines and it can be difficult even for mainstream small businesses to acquire loans. Even as more states come on board with legalized medical or recreational cannabis laws nothing has really changed in the banking arena for these businesses.
That means that they have usually had to turn to hard money lenders if they want to raise capital to improve operations, expand or generate working capital.
Hard money loans have been traditionally hard to get and even harder to pay back.
Just like with the banks, getting approved for a loan of this type has been a trying process with exhausting amounts of paperwork and financials involved. In the past, the guys willing to lend to this type of business wanted their “fair” share in return for sticking their neck on the line.
But, now there is a light at the end of the tunnel for cannabis merchant financing.
At Bankcard Brokers we are now working with many kinds of funding opportunities including private lending, equipment financing as well as merchant cash advance options for cannabis business owners. This type of lending is becoming much more mainstream and our lenders are used to working with alternative industries. One of the main benefits for both the lender and the merchant is the fact that they are much more flexible than traditional government regulated banks. These lenders are not required to adhere to the same banking regulations as a federally governed bank would be. Which means they are able to operate with much more lenient underwriting, if you will, and circumventing all the usual red tape allows them to come to approval decisions much more rapidly.
Cannabis industry merchant cash advances and financing.
Since the loan is paid through a percentage of the monthly revenue it allows a business to make larger payments when business is booming and then smaller payments during times of year when you might go through a slow season. This model also works great for seasonal companies such as cultivators who still grow outdoors. This type of loan strategy not only protects your assets, it protects your credit.
Whether you are looking to raise working capital, fund a new marketing strategy or finance a new piece of equipment you now have the power to make that happen quickly and easily. No more jumping through hoops and bureaucratic red tape.
The supporting documentation required is minimal so you won’t be tearing your hair out trying put together a huge loan package with several years of tax returns. And approval won’t take weeks or even months. Many of the lenders we are working with will be able to give an approval within 24-72 hours. Acceptance and funded within 24-72 hours! Yes, you heard that correctly! You can literally be funded within hours of approval. How does that sound?
With this type of financing or merchant cash advance you decide how much you will need and what you want to spend it on. Obviously the idea is that you would be spending it on something that improves your business and not your next trip to Hawaii, but you won’t have to actually justify it. You decide what you need.
Because the amount of money that you will be able to borrow is based on your average monthly volume (not the price of the item you are trying to purchase) and many of our lenders will loan you anywhere from 1-5 times your monthly volume, you just have to make sure that your business can support the amount of money you need.
There’s no better time than the present to grow your business with a cash infusion.
Just like any normal company, it’s important to make sure that you will be able to afford your growth and still turn a profit. But unlike them the cannabis industry is growing and changing so fast it’s dizzying to keep up with, but keep up you must. It is always easier to borrow money when you don’t “need” it. When business is lucrative it’s easier to qualify for a loan. This is a good time to plan for the future and embark on any expansion or new equipment that will help to insure your profits stay in the green.
We are not just working with one lender, we are working with multiple financiers to make sure that we are able to offer the right situation for each and every one of our clients. We take the anxiety out of the borrowing process so you can focus your energy on realizing your company’s true potential. Our ETA-Certified payment professionals are not only trained in the intricacies of the payment processing industry, they know and care about how to help you become the most successful business owner that you can be. Your success is our success.
Call today to for more information about how you can bring your dreams to life with a painless and incomparable business loan.