Cannabis and Marijuana are now legal in the United States, so it is a big requirement to finance and invest in the Cannabis business industry. Whether you own a Cannabis or Marijuana pharmacy, a Cannabis industry grower, manufacturer of Cannabis products, or Cannabis industry distributor, you will need finance. Today we will tell you about all possible ways to invest and raise your Marijuana or Cannabis business.
Cannabis Industry Analysis
The public support for Cannabis and Marijuana has changed the mind of government and laws and the economic value of Cannabis for the country has put a legal impact on them.
In 2016, this medical and recreational cannabis produced revenue of $16 to $18 billion. The Cannabis industry in the United States is estimated to be increased by 241 percent until 2021.
If a person spends a dollar in purchasing Cannabis, then the United States will have the economic benefit of $3.
The business of Marijuana and Cannabis seems very beneficial and productive. The economical benefits gathered from Cannabis leads to funding in taxes, scholarships, real estate, and construction industry.
Cannabis Business Loans
With the massive growth and economical value of Marijuana and Cannabis, people are showing more interest in its business to compete with the Cannabis industry. People are finding ways to get finance for their business which is really important in the start and ever plan has a limit.
Let’s figure out some of the finance plans for Cannabis and Marijuana business or dispensary:
- Private Loans
This is the most basic type of financing for the business of Marijuana and Cannabis companies. Non-bank private loaners are more towards financing cultivators and manufacturers of Cannabis products. Most of these private loan generators hide from giving loans to dispensaries but if the dispensaries generate good income then some will generate finance.
Its funding time is within 7 to 14 days and rates are 8 to 25% with a duration of 1 to 3 years.
- Equipment Leasing
This another type of Cannabis loan that entirely focuses on financing cultivators for the requirement of cultivation to grow Cannabis. Cannabis companies can get important equipment to grow Cannabis in plethora by getting a loan from these equipment leasing companies to acquire cultivation machinery.
The funding time of equipment leasing is 5 to 14 days with a duration of 1 to 7 years and the rates are 8 to 20%
- Commercial Real Estate
Commercial real estate loaners are more urged to generate loan to the cultivators that need to buy any land or real estate to help grow Cannabis. There are some types of Commercial Estate loans that are available to finance Marijuana business and Cannabis companies are bridge loans, hard money loans, and short basis mortgages.
Their funding time is 30 to 60 days with a period of 1 to 5 years and 8 to 20% rates.
- Dispensary Cash Advance
This is not a loan, it is short-term financing for Cannabis that is good for funding Marijuana dispensary fastly. But if you want to own a weed dispensary and finance your dispensaries in advance then your dispensary requires to generate a high bank statement earning.
Their funding time is 1 to 2 days with a period of 4 to 12 months and the factor rates are 1.30 to 1.49.