Small business owners dream of attracting the one single order that will put their business on the map. Most do not have enough money to buy new materials or marketing services that separate their use from the rest. Cannabis business owners face unique challenges because they cannot get around federal regulations that allow association with credit companies, banks, and other financing institutions. Purchase money financing has many viable opportunities that fulfill orders for the next massive deal.
What is purchase money financing?
The funding is a type of cannabis business lending that allows businesses to access the raw materials that complete customer orders. It will enable entrepreneurs to get full financing to pay the invoice of the lender with an interest amount. Purchase is the best long-term option for business owners because it provides immediate access to capital funds.
What are the steps for getting purchase money financing?
There are a couple of general definitive steps for purchase money financing, as described below:
- The cannabis owner should have a purchase order for finished goods from the retail seller.
- The lender pays the supplier a direct amount of raw materials with an amount from our financing for marijuana dispensaries.
- The cannabis business owner gets the raw materials and creates products that fulfill the eventual purchase order.
- The retailer pays an invoice to the lender, who then keeps the full amount and accrued interest. The remnant amount is typically a payment to the cannabis owner.
What are the perks of purchase money financing for marijuana dispensaries?
The financing option offers excellent funding for cannabis business owners seeking greater purchasing power.
- The marijuana industry financing option allows entrepreneurs to pay cash or direct bank deposits, hence allow quick business contract fulfillments.
- Cannabis business loans are outstanding for cannabis business owners who want to capitalize on abundant business seasons; hence they can stay afloat in a competitive cannabis field.
- The entrepreneur can quickly improve unit financing to reduce the cost needed for the manufacture.
- Businesses can focus on essential factors instead of worrying about accessing the cash needed to meet a large order.
- More businesses qualify for financing because they do not need a cutout point of preferable credit scores – The lender uses the purchase order as collateral for the loan.
- You have the motivation for a better marketing scheme because the lender will worry about the payment history of your loan.
Our clients are not the only beneficiaries of cannabis equipment financing because we gain an eligible business gain from the deal. Lenders have limited risk when they have certainty of the payment history. You must assure the lender of your payment capability to better your chances of receiving the optimal financing.
Who is eligible to purchase money financing?
Purchase money financing is beneficial to all aspects of the cannabis industry but incredibly helpful for manufacturers, cannabis brands, cultivators, and ancillary firms. It is also conducive for subsidiary components of the industry, including dispensaries.
BeSpoke Financing addresses critical issues of the industry by lessening the difficulty associated with acquiring cannabis loans. We explain financing needs and details such as payment fees and interests when you apply online.
Santa Monica CA 90401