Located in Carpinteria Valley, Headwaters is California’s largest — and most sophisticated — cannabis cultivation company. Its mission is straightforward and clear: to be the most trusted supplier of quality cannabis in the state. The company uses best-in-class cultivation techniques to create a reliable output that’s both high-quality and low-cost, rivaling other California cultivators.
As simple as the mission seems, it also comes with the unique challenges cannabis companies face. One of the most significant is securing financing to fuel growth and meet customer demand. Headwaters was able to find that solution with Bespoke Financial.
The Need To Fuel Growth and Meet Customer Demand
In 2019, Headwaters was enjoying massive margins and generating large profits. But as new cultivators joined the industry, prices decreased, and profits fell. The company knew it needed capital to meet its growing customer demand, while continuing to focus on scaling the business all despite the decreasing prices of wholesale cannabis flower.
The problem was that there were limited options, and Headwaters was apprehensive about them. The company couldn’t go to a conventional bank and apply for a business loan. However, it also didn’t want to give up any more equity in the business. But it knew it needed to do something. It wanted to expand its facilities, and customers wanted more products. And that depended on more cash flow.
The Solution: Strategic Partnerships and Flexible Cannabis Financing
Headwaters met its challenge head-on by developing partnerships with other cultivators to source bulk flower and take advantage of Bespoke Financial’s flexible cannabis financing. The capital the company received provided them access to more purchasing power for inventory purchases while also enabling them to pay employees and fund not one but three cultivation facility expansions!
Over time, Headwaters’ line of credit with Bespoke grew from just under $1 million to $6 million. As it has grown, Bespoke has grown too. According to Headwaters’ Director of Sales & Sourcing, Ed Aronchick, Bespoke Financial has been a true and trusted partner. Bespoke’s transparency, affordable rates, and seamless process have made a significant difference in Headwaters’ business.
Gaining an Edge Over the Competition With Bespoke Financial
For companies like Headwaters, Bespoke Financial has been a substantial asset.
With Bespoke by its side, Headwaters met its challenges head-on. Its line of credit gave them the flexibility needed to meet growing customer demand and also continue to grow comfortably. It had also maintained control, which was a top concern when it first started addressing financial concerns. Bespoke Financial gave Headwaters what it needed in an industry with limited access to traditional financing options, providing a significant edge over the competition.
Are you looking for quick and easy access to cannabis financing for your business? Visit Bespoke Financial to learn more or apply today!
