The new cannabis laws have spawned an industry that is poised to skyrocket in the next decade. In fact, the current business news reports that the future looks bright for the cannabis business industry. In 2018, investors put 10 billion dollars into the North American cannabis market. According to Arcview Market Research, recreational cannabis and medical marijuana business industries are expected to grow to $57 billion by 2027.
Because of the outstanding projections in the cannabis business news outlets, financial institutions are providing business loans to viable cannabis-related businesses such as dispensaries and farms. According to the U.S. Treasury, there are already financial institutions actively backing growers and other cannabis businesses with loans. This is a strong indicator that financial options for this industry are expanding.
If you are a cannabis business owner and wish to expand your cannabis company, read on. We’ve developed a guide that will help you understand all of the available cannabis business ideas and financing options.
Cannabis Business Funding Guide
Whether you are interested in adding a storage facility for your farm, or another location for your dispensary, it is an excellent time to look into the types of business funding that can support an expansion and your brand. There is already an abundance of new business owners that are taking steps to open cannabis businesses. We will be seeing more breeders, cultivators, dispensaries, extractors, manufacturers, and ancillary product producers opening businesses in the next decade. Too much competition is often the source of oversupply, which narrows the prospects for business success. It is a good time to expand now with a cannabis business loan so your business does not get lost in the shuffle.
The state of Washington already has this business problem. According to Marijuana Business Daily, Washington’s cannabis supply has flooded the market causing a drop in both wholesale and retail prices. The source of the problem is that there are too many players. The state is currently reviewing several alternatives to correct this situation. Some of the more traditional options they are reviewing are to (1) limit and/or reduce space for breeder and cultivator businesses, (2) stop license transfers, and (3) put a moratorium on the license approvals.
Once there is an overabundance of cannabis businesses, finding business funding will be hard. Financial lenders will stop offering term loans to cannabis start-ups as well as those businesses that missed the current business funding opportunities and are failing. In other words, getting business funding in the future may be more difficult.
Partnering with the Greenbox Capital for cannabis business loans now will give your company the advantage you will need to stave off any new local businesses in the future.
Need More Space for Your Cannabis Company?
Most cannabis businesses started out growing or selling medical marijuana, so not much space was needed. It was fine for the time, but now that recreational cannabis is legal in so many states, it is obvious that more space will bring in much more business.
However, more square footage also means filling up the additional space. Whether you are looking for cannabis business loans that can increase the square footage of your farm or dispensary, Greenbox Capital is eager to help. You will want to first size up your needs before settling for a small business loan that barely covers the necessities. It may take a couple of months before there is a steady increase in wholesale contracts or retail shoppers. Here is a partial list of considerations that may help determine the number of loans you may need now or in the future.
- Additional rent or lease
- Ancillary operating equipment
- Point of sale computers
- Employee salaries and benefits
- Security (guards within storefront)
- Extra Working Capital
At this time, loans for cannabis businesses are fairly low risk. Yet making hard business decisions still relies on utilizing available information, such as local statistics, researching the types of loans that will not sink your company in a mound of debt, and reviewing the local competition. Spend the time now on assessing your current and future business needs, Greenbox Capital will become your business partner for the duration.
If you own a cannabis farm business, you already have a practical idea of what it will take to stay ahead. For example, proper storage is critical. If you plan to expand the square footage of your farm, you will need proper storage for the excess. Plus, if the increased supply doesn’t sell quickly, controlling variables such as temperature and humidity will be critical.
Equipment loans may be needed to support maintenance or growth plans.Expanding your cultivation business will most likely require equipment purchases so that the increased volume of medical and recreational cannabis can be harvested and stored properly. Plus, potent crops need to be farmed with equipment that won’t break down or taint the merchandise with spilled oil or gasoline. Thinking ahead will ensure that your cannabis business loans do not keep your business in debt, but rather help with improvement and growth.
If you own a dispensary business, you may consider adding delivery to your services. After all, it may be less expensive than adding square footage to your store. If that is the case, then purchasing or leasing delivery vehicles will be the best move. Rather than working with an auto dealer’s financing options, your business may be better off with alternative funding options.
Convenience has taken over our society, which means that one vehicle is not going to sustain growth in the delivery aspect of the business. Short- and long-term forecasting will help determine the cannabis business loans you will need now and in the future. The advantage of working with an alternative funding business is that short-term loans, credit lines, and more are available without having to reapply each time your business needs funding.
Cannabis business loans can also be used to purchase additional inventory. Your farm or dispensary business cannot grow without additional goods to sell. Oftentimes buying extra inventory puts the business in a tight spot financially. This is particularly true when marketing is just starting, and fresh customers are not yet a mainstay. This is when quick loans or lines of credit can really help stabilize the business and jump on opportunities for inventory deals.
Greenbox Capital’s Cannabis Business Loans
There are several ways Greenbox Capital can help cannabis businesses – it’s just a matter of choosing which loan product is best for your specific situation. Check out the features of each type of funding options. If there is any confusion, set up a complimentary consultation with one of our business professionals.
If your customer’s purchases are made primarily with credit cards, you can receive a cash advance within 24 hours! Our MCA is based on your business’ future sales. Many business owners favor this type of funding because the automated payments are made through the merchant bank account. There is never a worry about repayment, as long as credit card transactions continue coming through your business.
We offer short term business loans and repayment terms that are flexible and easy to meet. When you need a loan starting at $5,000 and up to $250,000, Greenbox Capital makes business funding easy. We understand the importance of having working capital when you need it, so our short term loans are ideal for handling quick business requirements.
If your cannabis business offers monthly credit to any of your wholesale customers, your accounts receivable period might range from 30 to 45 days. When customers’ payments are not immediate, it can put a strain on your business. Our invoice factoring option is a great solution for the gap in time and allows your business to stay current with your bills.
Our collateral loan is a type of small business loan that uses non-residence real estate or developed land worth a minimum of $100,000 as collateral. The minimum loan amount is higher than the others – at $25,000 and the maximum amount is $250,000. If you prefer this loan product, it is best to speak with one of our funding professionals before filling out the application.
Business Line of Credit
If you prefer to withdraw less than the full cash advance amount you can apply for a line of credit instead. This is preferable for many business owners who are orchestrating an expansion. It allows you to use the funds when they are needed and avoid making payments on funds you have not yet used.
Greenbox Capital – Financing Options
We are working hard to support our clients and give them every advantage when it comes to loans. As such, our full product line of business loans was developed to make business improvements and expansions easy. A successful business requires working capital loans that keep business flowing smoothly.
Getting a cannabis business loan through Greenbox Capital is easier than you can imagine.
If you have owned your cannabis business for at least 5 months and have a monthly revenue average of $7,500 for each of the past 3 months, we would love to hear from you.
All you need to do is fill out the quick one-page, online application and within 24 to 48 hours you will have your approval, and quick funding to follow. We can work with bad credit and offer flexible terms.
If you already know which loan you would like to work with, go ahead and fill out the simple online application today! Or if you would like to speak with one of our loan specialists, we are always available and ready to take your call.
We offer free consultations so don’t hesitate! Call now: 1-855-442-3423
All About Tires
I have worked with Greenbox over the last couple years when I find the need for working capital and they always provide me with a plan that fits my needs and goals. I would recommend Greenbox to any small business seeking extra funding.I have worked with Greenbox over the last couple years when I find the need for working capital and they always provide me with a plan that fits my needs and goals. I would recommend Greenbox to any small business seeking extra funding.
Quick & Check, LLC gas station
All of us at Quick & Check, LLC have benefited from Greebox Capital’s excellent service, and important contributions to our company’s growth and progress.All of us at Quick & Check, LLC have benefited from Greebox Capital’s excellent service, and important contributions to our company’s growth and progress.
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