Cannabis Lab Equipment Financing: The Key to Unlocking Your Lab’s Potential
Cannabis labs are the backbone of a safe and thriving cannabis industry. They ensure consumer products are free of contaminants, mold, pesticides, and toxins—protecting end users and building trust in the supply chain.
But there’s a catch: cutting-edge lab equipment like HPLC systems, mass spectrometers, and analyzer units come with a steep price tag, often creating a daunting barrier to entry for business owners.
Cannabis lab equipment is prime collateral, making financing a viable path to equip your lab without draining cash reserves. Here’s how cannabis lab equipment financing works, why it’s a smart move, and what you need to know to get started.
Why Cannabis Lab Equipment is a Lender’s Dream Collateral
When it comes to evaluating collateral for cannabis business loans, they ask four key questions:
- Does the equipment have a long life span? Yes – high-quality lab equipment is built many years with proper maintenance.
- Does the equipment retain its value? Absolutely — Precision equipment retains significant resale value.
- Is the equipment easy to repossess? Check – Unlike other types of equipment, lab equipment repossession is very straightforward.
- Does the equipment have a large secondary market with which to resell it if the worst happens? Definitely – Lab tools have broad demand across a variety of industries.
Cannabis lab equipment checks every box, making it a low-risk asset for lenders and a financing-friendly option for you. Whether it’s a $50,000 chromatograph or a full lab setup, this collateral strength opens doors to funding for your business.
What Does Typical Cannabis Lab Equipment Financing Look Like?
If you’re wondering how a cannabis lab equipment loan works, here’s a general idea of what you can expect:
One of our trusted non-bank private lenders offers financing and refinancing for cannabis lab equipment, with loan amounts ranging from $50,000 to $2.5 million. There’s no hard cap—meaning you can finance everything from a single piece of equipment to outfitting your entire lab.
Repayment Terms: Loan terms range from one to three years, although some lenders may offer extensions of four or five years for well-performing clients.
Interest Rates: Rates currently range from 10% to 15%, depending on the borrower’s risk profile. It’s important to note that this lender does not charge any lender points, which is uncommon in both traditional and cannabis financing. This is a significant advantage when it comes to reducing the cost of your capital.
Eligibility Requirements: The lender does not require time-in-business or revenue prerequisites, but you will need strong personal guarantors who can repay the loan if the business cannot. Additionally, startups will need to demonstrate access to capital.
Bonus Perks: The lender also offers a unique opportunity to buy back cannabis lab equipment that is no longer needed, in addition to sale-leaseback options for refinancing. This can provide flexibility and additional liquidity for your business.
While soft costs (like rent or utilities) are not eligible for financing, the lender can finance up to 100% of the equipment value for qualified applicants.
Why Finance Your Cannabis Lab Equipment?
Whether you are starting a new cannabis testing lab or expanding an existing one, financing your equipment can provide the financial flexibility you need to scale without depleting your cash reserves. This program is a great way to secure the necessary equipment for your lab while maintaining liquidity for other business operations.
Contact us today to schedule your no-obligation discovery call.
About the Author: Daryl Eames is the founder of the NH Cannabis Association & Loanviser. He has advocated for cannabis legalization in the state of New Hampshire and has deep experience in cannabis financing and cannabis merchant processing, servicing the cannabis industry since 2019.
