The continued growth of the medical and recreational marijuana markets offers a great opportunity for companies to expand or upgrade operations. New cannabis equipment is expensive, so it is critical to your business’s financial health that you take advantage of various financing options, including opening lines of credit.
Cannabis Financing and Lines of Credit
Finding financing for your cannabis company can be difficult because of strict federal and state banking laws that make most traditional lenders unwilling to take on the risk. If those banks were to run afoul of state or federal regulators, they could lose their own licenses.
Cannabis companies face financing challenges that start when you launch them and run through day-to-day operations and hopes for expansion due to this lack of banking solutions.
These headwinds don’t just affect your ability to get loans — they make it difficult to secure lines of credit that are critical for most businesses to operate and expand.
With a line of credit, your business can borrow money repeatedly up to your credit limit. As you make payments for the credit used, those amounts become available for future borrowing. This revolving amount of available capital provides flexibility that isn’t available through other cannabis financing options.
Whether you want to expand your operations or update your equipment to keep up with changes in technology, you need the financing option that offers them the most bang for your bucks.
The Benefits of Getting a Line of Credit
Loans and other financing options are very helpful for marijuana companies like yours that need to purchase new cannabis equipment. But in many cases, a line of credit is a more flexible choice with several benefits, including:
- The ability to only tap into funds as the need arises and avoid interest charges on money that sits unspent
- Access to a rolling amount of funds as you make repayments, negating the need to keep applying for more capital
- The ability to run your cannabis business without the need for outside investors who may have different goals or strategies
- Flexible repayment options so you can pay more when the funds are available or pay less during the leaner times
- Chances to quickly take advantage of equipment sales, either on large items or on bulk amounts of smaller parts and equipment
How To Get a Line of Credit to Purchase Cannabis Equipment
Bespoke Financial works with cannabis companies across verticals, helping cultivators, manufacturers, retailers, and those in ancillary cannabis businesses grow their operations. The Bespoke revolving line of credit is an efficient, flexible way for you to buy the new equipment you need to meet the growing demand for your products.
Bespoke offers lines of credit of up to $10 million and will help you set up flexible payment plans to suit the needs of your business. There are no penalties for prepayments, and Bespoke can advance funds in 24 hours or less.
You can easily apply for a Bespoke line of credit by providing your business and financial information, taking the first step toward the sensible financing of the equipment you need to expand your footprint.