In part 1, we answered some commonly asked questions about securing a loan as a cannabis business owner—what a cannabis loan is, if you can get one, which loan might be right for you, who offers these loans and how you get one. We noted that since cannabis is a Schedule I controlled substance on a federal level, you won’t be able to get a cannabis business loan from a major bank or similar financial institution even if it’s legal in your state. But you can get one from Clear Skies Capital.
We have been lending to cannabis businesses since 2018, so you can:
- Pay vendors and suppliers upon shipping
- Lease equipment to preserve capital
- Bridge the gap between cash outlay and realizing revenue
While every deal is custom to meet each cannabis business owner’s needs, we typically are involved in the following types of business loans:
- Vendor Financing—Great for when you need advanced funds against unsold inventory. Having us pay your vendors and suppliers upon shipping frees up your capital so you can invest in things to help your business grow. Receive terms from 30 to 180 days, with no early payment penalties. The faster you pay, the lower the cost.
- Equipment Financing—Great for reducing the risk of long-term obligations for obsolete equipment, something that is definitely a risk in the cannabis industry since it is constantly evolving. We will work with your vendor directly to ensure your equipment gets ordered, shipped, delivered, and paid for so you can take possession quickly.
- Working Capital/Line of Credit—Great for speed and flexibility when it comes to accessing capital. Our working capital facility functions like a revolving line of credit, allowing you to have access to capital when you need it for unexpected expenses and opportunities.
The Clear Skies Difference
All alternative lenders are not created alike. Most offer an easy application process, fast approvals, and creative and flexible structures—as we do—but not many have the depth of experience we do in the cannabis industry. Having that industry finance expertise means we can provide the relationship and support you need.
The Takeaway
As the owner of a cannabis business, you have fewer options for financing than more traditional businesses do. However, Clear Skies Capital will work with you to provide the financing your cannabis business needs to get off the ground, maintain operations or expand.
If you have any questions about how your cannabis business can secure financing, give Clear Skies Capital a call at 800-230-9822. We can provide insight into how we have helped other owners in this industry find the loan they were looking for and determine how much you may qualify for.