Cannabis Lender Highlight: We Found a True Line of Credit for Cannabis Companies!
Here Ye, Here Ye, We Have Found the White Whale of Cannabis Loans!
For those that know me, you know I’ve been focused solely on cannabis, hemp and CBD financing for the last 7 plus years.
In all those years there has been one very elusive cannabis financing product. Yes, we have access to asset backed lines of credit. Even revenue based products that have a revolving component.
But never an actual cannabis line of credit…until now!
Introducing the Cannabis Flex Line of Credit
Some of the benefits of a true line of credit are that your business can draw amounts as needed rather than taking the entire loan and paying interest on all of it from day one.
You make a draw, you start paying interest on the drawn amount. The balance remains available interest free until your next draw.
Another benefit is they are not asset based. For example, they don’t require you own a building outright that is tied to the loan. Your collateral remains available for future financing needs if you want to leverage it.
In addition, this cannabis line of credit provides an actual revolving pool of capital your cannabis company can use for any need!
Benefits of this Cannabis Flex Line of Credit
- Pay interest only on what you draw, when you draw it
- Payments can be structured weekly, bi-weekly or monthly
- As you pay off each draw that amount goes back to the availability
- Generally 12 month terms. Can hit 14 months for strong borrowers
- Approvals in 24 to 36 hours
- Fund same or next day of approval
- $200K to $15 million
What Are the Qualifications for the Cannabis Line of Credit?
There are some requirements in order to qualify for this financing product. If you are generate less than $6M in annual revenue we still have options for you.
- Minimum $6M in annual revenue (do have syndicate options for lower revenue companies)
- Minimum 3 years time in business (exceptions for strong companies)
- PG not required up to $3M (some exceptions)
- When a PG is required, they will need at least a 650 credit score
- Business checking account with a minimum of 8 revenue deposits per month
- Minimum $50K draws
- Pay interest only on what you draw, when you draw it
- Payments can be structured weekly, bi-weekly or monthly
- As you pay off each draw that amount goes back to the availability
Want to Learn More About this Cannabis Line of Credit?
Contact us today to schedule your no-obligation call to walk through your project, confirm you qualify for the program and prepare to engage our lender.
About the Author: Daryl Eames is the founder of Loanviser and the NH Cannabis Association. He has advocated for cannabis legalization in the state of New Hampshire and has deep experience in cannabis business loans and cannabis merchant processing, servicing the cannabis industry since 2019.
