Denver Dab Co. is setting the bar for growth in Colorado. The company is a licensed processor focused on the production of top-shelf wax, shatter, and live resins in Colorado. They offer a unique high-end experience for cannabis users. Denver Dab Co. was one of the first businesses in the country to fill this niche, and their loyal customers love their products.
Like many businesses that see rapid growth, Denver Dab Co. found that the demand for their products expanded faster than they could keep up and they were losing out on potential profit as a result. Here’s how Denver Dab took control over its growth to become a mainstay of the Colorado cannabis community.
What Denver Dab Co. Needed to Succeed
Denver Dab Co. started in Evergreen, Colorado, just half an hour west of Denver, in 2014. Since then, the company has experienced a rapid increase in demand that quickly outgrew its original space. The company soon moved into a facility that had more than twice as much room for production. However, Denver Dab needed more than just space to manufacture its goods, they needed more raw materials.
When companies are just getting off the ground, cash flow is a significant concern. The business needs to generate revenue from sales to purchase more raw materials to make more products. If demand outgrows the cash flow generated from revenue, a company can lose customers to competitors who have products on hand. That’s precisely the problem Denver Dab experienced. The company needed access to a revolving line of credit to fund the purchase of raw materials without having to rely on cash flow alone.
How Cannabis Business Loans Made the Difference
That’s where Bespoke Financial came in. Bespoke’s cannabis lending options allowed Denver Dab to access the cash it needed when it needed it. As a result, the company was able to maximize its unit economics and hit volume-based price breaks in order to maximize its purchasing power. For example, the company made bulk packaging purchases that saved Denver Dab more than 50% on essential items like jars.
The result was two-fold: not only was the company able to produce more product each month, but it also did so for less money. As the company grew, its line of credit did, too. Denver Dab was able to maintain its rapid growth with a flexible revolving line of credit that grew as the company did. According to Denver Dab’s CEO Drew Mattison, “The single biggest reason for my company’s growth this past 4 months is Bespoke’s flexible inventory financing”.
Today, the business is one of the most popular cannabis providers in Colorado and continues to grow. If you want to follow the company’s success, you can follow them on Instagram, Twitter, and Facebook.
Bespoke and Cannabis Lending Can Help Your Company Grow, Too
A revolving line of credit can make all the difference for your cannabis business. Like Denver Dab Co., you can use a Bespoke line of credit to achieve bulk discounts and wider margins that will help your business grow. Learn how Bespoke can help you free up your cash flow by getting in touch today.