Marijuana Business Startup Loans

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Marijuana Business Startup Loans


The legal sale of marijuana in the United States is a massive industry. Recreational marijuana is 100% legal in 16 states and medicinal marijuana is legal in 42 states. The private sale of this product in a vast majority of US states has given birth to a plethora of extremely lucrative business opportunities, driving for the funding of startup marijuana business. Luckily, there are many ways to get funding for a cannabis startup!

The profitability of this industry is only growing. Funding for startup marijuana businesses is in high demand. We know marijuana business loans.

In 2012, Colorado and Washington became the first states to fully legalize recreational use. Now, less than a decade later 14 states have followed suit. This, coupled with 30 years of medical marijuana revenue has developed into a 60-Billion-dollar industry. US cannabis sales increased by 67% last year. Top financial forecasts expect the industry to be worth 130 billion dollars by 2024.


The Booming Effect of Startup Cannabis Business

With all this money lying in cannabis, it would be tough to argue against the success a startup would surely find in this field. But there is one major issue that marijuana businesses face. That issue is financing. The bulk of business owners need to rely on loans and financing in some form or another to manage operating costs.

The problem is that since marijuana is still illegal at a federal level, traditional lenders like banks and credit unions are unable to deal with people in this industry. Since banks receive funding from the federal government, they consider any business associated with the sale of cannabis to be illegal and illegitimate. 

Entrepreneurs in this sphere have historically had an exceedingly difficult time receiving financial assistance. This has created a barrier that deterring many from jumping into marijuana-related business ventures. Things have changed in recent years. Now, select alternative lenders can provide funding for startup marijuana businesses.

While you may not have as many options as traditional businesses, alternative lenders can provide some very flexible financing choices.


Short-Term Business Term Loans

A term loan is a one-time portion of capital that is to be used for whatever business expenses you need. Whether that be day-to-day costs, or a single massive purchase to accommodate expansion.

Term loans typically fall under one of two categories: short-term and mid-term. Short-term is going to be easier to qualify for but deal in smaller amounts while mid-term can give you a higher level of funding but will be much harder to qualify for. 

One advantage of term loans is that they deal in factor rates. This means that instead of an accumulated interest rate, you will be given a set amount to be paying back over a window. 

This is a fantastic option for you as a cannabis business owner since you do not have to worry about accruing massive interest while in the process of paying off the loan.


To qualify you must have:

  • Been in business for more than a year.
  • A minimum credit score of 500
  • A greater annual revenue than $100K


Line of Credit

Is a line of credit a good choice? A line of credit is perfect for you if you are unsure as to exactly what your business needs will look like down the road. Unlike with other loan options, a line of credit gives you a resource that you can tap at will to instantly place funds in your bank account. This will give you the ability to meet unforeseen costs. This will also help uoi accommodate an opportunity that requires a time-sensitive expense. 


To qualify you must have:

  • Been in business for at least 1 year
  • A minimum 600 credit score
  • At least $100K in total annual revenue


Equipment Loans 

Equipment financing is a lump sum is given out by a lender to fund the purchase of business-related equipment. The process of growing marijuana is very labor-intensive and typically requires a great deal of farm equipment.

Equipment loans are going to be a great choice if your company is involved with growing and cultivating as the money can be used to purchase soil, pots, or vehicles for larger operations. These are going to be especially beneficial for indoor growers as additional equipment such as grow tents and ventilation systems are necessary and can prove costly.

Equipment financing falls under the category of self-secured loans. The equipment itself will serve as the collateral to back the capital. Some equipment specific to farming has a heavy depreciation of value over time. This means lenders may require additional collateral in order to move forward with distributing funds. 


To qualify you must have:

  • Been in business for longer than 1 year
  • A minimum credit score of 630
  • Annual revenue of more than $100,000


Invoice Financing 

If you are in the business of cannabis, you know all too well that it can take a long time for the money you are owed to actually end up in your pocket. This stems from the fact that there are so many start-up costs and maintenance costs. You must also contend with the uncertainty of a market hindering state-by-state legality. 

It’s common to contend with the fact that cannabis retailers are prohibited from running credit card transactions. This means that every sale needs to be made in cash. On top of that, it is exceedingly difficult to put any capital accumulated through the sale of marijuana into a bank. In the eyes of the federal government, this would be considered money laundering. 

In 2019, a bill was passed called the SAFE banking act which prevents bankers from facing legal recourse for working with merchants in the cannabis industry. The idea is still new, and despite the legislation, many banks are still reluctant to work with cannabis-based businesses.  

The point here is that although you might have a lot of income, that doesn’t necessarily translate into immediate spending power. Invoice financing is going to be a great way to work around this dilemma.

With invoice financing, you can render the money you’re owed in order to receive an immediate cash influx.


To qualify you must have:

  • Been in business for more than a single year
  • A minimum credit score of 600
  • More than $130K in annual revenue


0% Business Credit Card Stacking

A business credit card is a great way to finance start-up costs or rapid growth. This is a solid option for any marijuana business owner if they have good personal credit of 700>  FICO score or better. Bitx Funding has a unique set of connections, knowledge, and financing. Bitx has the tools and capabilities to connect you with a 0% interest credit card to help you finance your marijuana business needs. 

To qualify you must have:

  • 6 months in business 
  • A minimum credit score of 700> 


Personal Loans for Business 

A personal loan is like a term loan in the way that it is a one-time lump sum. A personal loan is extremely flexible and rather than relying upon your business’s revenue for qualification. The sole determining factors lie within your personal financial state. If your credit history is sound, qualifying will be no problem. This is a great choice if you are an entrepreneur just starting a business looking for help with the off-the-ground costs. 

An added benefit is the flexibility provided by this loan option. A personal loan does not necessarily have to be for business expenses. Rules boil down to whatever action the lender approves. That is why this is such an optimal option for you as a marijuana business owner.

While other alternative loan options may be easy to qualify for, some online lenders still may be hesitant about giving out the money for a cannabis-based business. On top of that, there are still some limitations regarding exactly what you can do with those funds.

So with a personal loan, there are virtually no limitations on what you can put that money towards. The lender just needs to be okay with it. So, for that reason, it is extremely important to pick the right lender. You want to pick someone who is trustworthy, someone who is at ease with and experienced marijuana business loans.

To qualify you must have:

  • Verifiable personal income of $50K> 
  • A minimum credit score of 700>


The Time is Right to Get Funding

The US marijuana industry is currently booming. In a time of whirlwind expansion, it can be quite enticing for a motivated entrepreneur to jump on the bandwagon and share in the profit. But getting financial assistance, something that small businesses have always relied upon can be nearly impossible.

Billions of dollars in revenue spurred because of these cannabis companies. Still, the federal government still considers the sale and purchase of this product to be illegal. It is troubling when an entrepreneur passionate about marijuana is turned away by traditional financial institutions. Up until recently, they have served as the backbone for this country. 


BitX Funding offers Marijuana Startup Loans

Bitxfunding is an alternative lender with years of experience connecting business owners with the optimal loan. We help business owners like you get personal loans for your marijuana business and we love being able to fill the funding gaps for this rapidly growing industry.


To qualify for a personal loan, you must:

  • Make $50K > a year in verifiable personal income 
  • Have at least a 700 > credit score
  • Bonus points for owning a home vs renting


At BitX, we still believe in small businesses. We will actively do everything we can to ensure that you get the money you need to fulfill your operational demands. Traditional banks are not going to be able to get you financing for your marijuana company.

We fully understand and appreciate the legitimacy of your enterprise. We have an array of potential loan options to help you meet demanding costs every step of the way. 


Contact Bitx Funding

Our marijuana business loan specialists are standing by. Fill out the form below, give us a call at 800-824-2407, or simply click here to begin the loan process. Let’s work together to find out which marijuana startup business loan is right for you.


Application Template

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Published by Labate Marketing.

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