If you are a business owner in the rapidly expanding cannabis market, you may run into unexpected costs from time to time. Of these, the most significant is equipment.
Growing cannabis is highly labor-intensive and requires tons of different hardware, tools, and machinery to yield a finished product.
Purchasing all this gear can be challenging and may not be covered in your working capital. Cannabis equipment loans are an excellent route for financing the purchase of high-priced equipment for your cannabis enterprise.
Cannabis Equipment Loan Benefits
There are many benefits to acquiring a cannabis equipment loan from a lender. The lending party will float you the capital needed to cover 100 percent of the product expense.
Once you purchase this product, it is yours to own, so long as you continue to make timely payments. If owning is impractical for your specific situation, equipment financing also gives you the flexibility to lease gear.
Another benefit of Equipment loans is that they are self-secured. The physical asset is the collateral to back the loan amount.
Equipment financing also provides some very competitive rates. Let’s take a closer look at what equipment you could use to finance this type of loan.
Cannabis Equipment Loans for Outdoor Grow Equipment
There are two main distinctions when it comes to growing and cultivating cannabis. Grow operations can be held either indoors or outdoors.
The two produce different types of products, and your equipment needs will vary based on your chosen method.
Outdoor grow operations are cheaper to run, and easier to operate, and they produce an overall greater volume.
Here’s all the equipment for outdoor grows that can be funded with equipment loans:
- PH and PPM testers
Outdoor growing is relatively inexpensive when comparing it to growing indoors. But the costs add up rather quickly if you run a large-scale enterprise.
Financing Indoor Grow Equipment
Indoor growing is much more expensive than outdoor growing, as it requires about twice as much equipment. Outdoor grows also yield lower volumes of cannabis. But indoor growing also has many advantages associated with it. The vast majority of experts would say that indoor growing is superior.
Quality vs Quantity
With indoor growing, what you sacrifice in quantity, you make up in quality. The yield quality of taste, appearance and THC density is leagues above an outdoor grow.
This is because indoor grows do not rely upon the favor of mother nature. You can control every aspect of the environment, including temperature and humidity, in order to provide conditions that maximize the potency of the crop.
Be aware that you must pay for a great deal of additional gear to run a successful indoor operation. For an indoor grow operation, you will need all the gear previously discussed and some others.
Use cannabis equipment loans to finance the following products:
- Grow Tents
Cannabis Equipment Loans for Concentrates
Concentrates are an increasingly popular item for cannabis customers. Concentrates are crafted by extracting the THC or CBD from the plant and turning this into an oil or wax-like substance. This substance can be put into various products, such as gummies or vaporizers. But the process of pulling these molecules from the plant requires advanced machinery.
Types of Cannabis Equipment & Machinery
This machinery is immensely expensive, but the profits can be exceptional.
You can use cannabis equipment loans to finance the purchase of the following machinery:
- CO2 closed-loop extraction system
- Rotary evaporator
- Butane extractor
- Oil Presses
- Filtration screens
Don’t let the high costs of acquiring concentrate extraction equipment scare you. Although it is a hefty investment, these machines are incredibly efficient, and they will pay for themselves quickly.
Besides, if you finance the purchase, that money doesn’t have to come from your pocket.
How to Qualify for a Cannabis Equipment Loan
Qualifying for an equipment loan is a relatively simple process. As a marijuana business, traditional lenders like banks or credit unions aren’t going to be an option, so you must turn to an alternative lender to receive the loan.
Alternative lenders give you the advantage of procuring your funds quickly, as they are not restricted to the timely protocols and prolonged application process of traditional lenders.
This allows you to get the capital needed to cover your equipment needs within a few days.
You can quickly qualify as long as your credit history is in good shape. The equipment itself will provide the collateral. If you don’t have good credit, you will still be able to qualify for an equipment loan; however, some additional collateral may be required on your end.
To maximize your chances of qualifying, make sure you meet these 3 specific criteria:
- Your business must have existed for longer than one year.
- You must have a credit score higher than 630.
- Your total annual revenue must be greater than 100 thousand.
Get Funding Now with BitX Funding
BitX Funding is the premier source for connecting cannabis business owners with the ideal equipment loans. We will do everything we can to get you the best financing option, fully catered to your specific marijuana business needs.
BitX is well-versed in cannabis financing, and we will get you an equipment loan to fund the purchase of seeds, soil, lights, fans, and whatever other equipment you require.
We offer a very competitive Annual APR with rates as low as 8%. We will supply you with the capital to cover the total cost of your equipment purchase, and you will receive those funds within two days.
Our experienced loan specialists standing by to walk you through the best financing options for your cannabis enterprise.