One obstacle to owning and operating a cannabis business can be very tricky to deal with. That obstacle is financing. Loans are a standard operating procedure for any healthy business. While it has been challenging to secure a cannabis loan in the past, it is now easier than ever to grow and finance your cannabis business.
Even if a business is highly profitable and has been for a long time, borrowing money will still be necessary to continue functioning smoothly. As your business becomes more and more profitable, it is all the more crucial to borrow money. Many people assume that you only need to seek out business loans for startup costs. Once the business is up and running, the need for a lending partner will fade away. But the truth is that as your business grows, so do the costs of keeping that business afloat.
For a long time, it has been very difficult to get financing for any kind of, you are business that deals with cannabis. But due to some recent changes in laws and attitudes, getting funding for your cannabis business is now easier than ever.
An All-New Paradigm Shift
So why is it now easier than ever to get cannabis financing? The short answer is because of a massive change in people’s attitudes. For a long time, the cannabis plant has been demonized. Movements like the war on drugs have contributed to this viewpoint. Up until the past decade, cannabis was classified as a Schedule I drug. This means that it was thought to have a high potential for abuse and no medical value. This all changed with the scientific discovery of marijuana’s many medicinal properties; benefits, including pain reduction, appetite stimulation, and sleep aid. Some studies have even shown tumor reduction in rats thanks to the introduction of cannabinoids.
Since its approval for legal use on a state-by-state basis, medical marijuana has seen a massive rise in popularity. Ten years ago, Colorado and Washington were the first states to legalize marijuana for recreational use. Since then, many other states have followed suit.
Currently, 36 states have legalized medicinal marijuana, and 16 states have legalized recreational marijuana. Those numbers are only going to increase in the coming years.
2018 SAFE Banking Act
In 2018, the government passed a bill called the SAFE banking act. This law lifted the restraints placed on banks and other federally financed institutions. It allowed them to work with any cannabis-related businesses without facing penalties. Until this time, medical and recreational cannabis retailers could not rely on banks for either an account to hold their money or as a source for obtaining loans.
Despite the shifting attitude of the American public and the laws and state legislation to back up that support, most banks and credit unions are still unwilling to deal out any loans to a cannabis-related entity.
Banks are still unwilling to work with cannabis business owners. This is partly because of the product’s stigmatization and the federal government’s continued classification of marijuana as an illegal substance. But it also has to do with a risk evaluation. Banks are not in the business of loaning to risky parties. Due to their risk-averse approach, banks will only lend money if they are virtually guaranteed to be paid back. No matter how profitable your cannabis business might be, it doesn’t change the fact that it is a business built on top of laws that could change at any given moment.
But don’t worry. As a business owner in 2021, you no longer have to rely upon banks to get low-interest financing. The internet offers many companies that are well-versed in business loans. More and more business owners turn away from banks with their endless piles of paperwork and hoops to jump through in favour of a lender that can get them their money lightning-fast. For example, BitX Funding is the leading resource in alternate financing, and we’ll have the funds in your account within as little as 2 days.
What Sorts of Things Can You Finance with Cannabis Loans?
If you are a marijuana retailer enjoying great success, it may no longer be feasible to continue operating out of a single store. You may want to expand and open up additional stores in new locations to tackle new markets. In this case, you would need to pay for the additional properties. You also need to hire more staff to work out of these locations. That means a massive influx of salary expenses on your end.
Many businesses also want to expand their product lines when they enter a growth period. New products mean additional costs for growing, harvesting, and manufacturing.
In short, here are the main things that cannabis loans can help you finance.
- Rent for new locations
- Grow costs
- Day to Day operations
- Employee salaries
- Production expenses
It’s Easier Than Ever to Finance Your Cannabis Business
If you are a cannabis business owner needing a loan, then BitX Funding can help. We have excellent reviews and will go above and beyond to connect you with the optimal loan for your specific needs. The cannabis industry is proliferating, and as a business owner, you have the unique opportunity to be on the first floor of this evolving market.
Some may consider the cannabis industry risky because of its changing laws. But if you do your research, you’ll realize that the only thing changing is the number of states opting to legalize cannabis. There has not been a single state to legalize it and then voted to make it illegal again. Once these states realize how much money they can bring in, it would not be in their best interest to dissolve that state’s revenue stream. For example, Colorado has made 1.6 billion dollars in cannabis taxes since it moved to legalize it in 2014. Total marijuana sales in Colorado are at a whopping 9.8 billion.
At BitX Funding, we believe in the legitimacy of your cannabis enterprise. Whether you’re a grower, a retailer, a wholesaler, or an investor, we are well acquainted with the various types of cannabis financing. We can help you acquire loans such as the following.
- Term loans
- Line of credit
- Business cash advance
- Personal loan
- 0% business credit card
You can reach one of our loan specialists at 800-824-2407. Click here to see if you qualify.