{"id":22297,"date":"2017-12-23T16:00:13","date_gmt":"2017-12-24T00:00:13","guid":{"rendered":"http:\/\/cannabiscultivatornews.com\/home\/index.php\/2017\/12\/23\/financing-options-for-new-existing-cannabis-businesses\/"},"modified":"2017-12-24T00:38:18","modified_gmt":"2017-12-24T08:38:18","slug":"financing-options-for-new-existing-cannabis-businesses","status":"publish","type":"post","link":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2017\/12\/23\/financing-options-for-new-existing-cannabis-businesses\/","title":{"rendered":"Financing Options for New & Existing Cannabis Businesses"},"content":{"rendered":"<\/p>\n

Top 5 tips for financing & the most commonly leased items.<\/h4>\n
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B<\/span>anking and financing have been daunting tasks for many cannabis businesses in the past. Today, there are more options for businesses looking for start-up capital for launching new ventures. We are also seeing more options for equipment leasing, real estate loans and working capital for growing existing businesses in the cannabis space.<\/p>\n

Access to banking services for cannabis businesses has improved recently as more choices have become available in the marketplace. A leader this arena, Partner Colorado Credit Union<\/a> in Denver started by Sundie Seefried<\/a>, has launched a new company, Safe Harbor Services LLC<\/a>, focused specifically on helping more financial institutions provide bank accounts to cannabis related businesses (CRB\u2019s) \u2014 expanding banking and financial services to new states across the country.<\/p>\n

While the market for financing CRB\u2019s grows, there continues to be more demand for capital than available suppliers. For new and existing businesses seeking financing, it is important to be as prepared as possible as you search for the right financing options. I have listened to hundreds of requests for capital from cannabis-based businesses and completed $30 million in loans and leases for CRB\u2019s in the past three years. Here are the top five must-haves I recommend when seeking financing.<\/p>\n

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  1. Good credit<\/li>\n
  2. Good financials (especially for established businesses)<\/li>\n
  3. Timely response for document requests<\/li>\n
  4. Reasonable expectations as to rate and terms in a federally illegal business with no history<\/li>\n
  5. Personal guarantee<\/li>\n<\/ol>\n

    For established cannabis businesses, there are several items that often require financing for day-to-day operations or expansion of facilities or stores. The following are the most commonly leased items.<\/p>\n

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    1. Lighting for greenhouses or\u00a0indoor\u00a0grows<\/li>\n
    2. Ballasts and\u00a0other lighting components for grows<\/li>\n
    3. Extraction machines<\/li>\n
    4. Greenhouses<\/li>\n
    5. Scientific and testing equipment<\/li>\n<\/ol>\n

      Working with business owners in the cannabis space every day, our goal is to match them with investors and\/or financing partners to acquire the financing they need to expand or start their businesses and we often see the following types of loans:<\/p>\n