Michigan Cannabis Business Loans

Bespoke Financial helps address the funding needs for Cannabis businesses in Michigan with financing services specifically tailored to their needs. Grow your Cannabis businesses in Michigan with Bespoke Financial.

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Ready to get started with your Michigan cannabis business loan? We’ve made it easy to apply, and you’ll receive an answer within 7 days.

FAQ’s

number one

How do I get licensed for a cannabis business in Michigan?

Currently, Michigan has some restrictions on who can apply for an adult use business license. Some of those requirements are state residency or already having a medical cannabis business license. That will no longer be the case beginning on March 1, 2021 when the Marijuana Regulatory Agency (MRA) will accept applications from any applicant.

The nonrefundable state license application fee for all license types is $6,000. There may also be a fee due to the local municipality of up to $5,000. After the applications are approved there is an initial licensure fee that ranges from $4,000 to $40,000 depending on license type. Make sure to check the local regulations on cannabis, as counties are able to opt-out of legalization and become “dry counties” which prohibit growth, sale, and use of cannabis. Licenses will not be approved prior to securing a building, appropriate security, and other measures. In order to get all of those things in place, you’re going to need financing.

Number two

Can I borrow from a bank in Michigan?

It’s highly unlikely that your cannabis business will be able to borrow money from a bank in Michigan. While the sale of cannabis may be legal at the state level in Michigan, the substance is still classified as a Schedule I controlled substance by the FDA, making it illegal on the federal level. That means that most financial institutions, including banks, credit unions, and credit card companies, can’t work with you on either lending or banking services.

That’s where Bespoke Financial comes in

number three

How can I obtain financing for my cannabis business in Michigan ?

The first option would be with us at Bespoke!

Beyond that, the options are slim. You can try your luck with a hard money lender or try to find an investor. Even if you find an investor that you work well with, you’ll still be required to give up a chunk of valuable equity.

Commercial lenders like Bespoke Financial can help you obtain cannabis business financing in Michigan. Bespoke Financial was the first commercial lender working exclusively with cannabis businesses, so you’ll never have to worry about whether or not your loan and your business are in compliance with state and federal regulations surrounding your money.

Number four

What should I watch out for when it comes to financing in Michigan?

Because cannabis businesses don’t have a lot of options when it comes to obtaining financing, many predatory lenders have unfortunately seized on the opportunity. Some cannabis business owners report being charged interest rates of 40 to 50 percent on their loans, while others regularly receive emails attempting to persuade them that the company will allow the business to utilize credit card sales.

This is the exact opposite experience from what you will experience with Bespoke Financial.

To get the best rate for your cannabis business loan in Michigan, make sure to have all of the appropriate documentation prepared prior to applying for a loan from Bespoke, including your financial records (balance sheets, income statements, and bank statements), your credit risk profile, and capital needs.

number Five

What do I need to know about running my business in Michigan?

Besides the difficulties in obtaining financing when running a cannabis business in Michigan , one thing to keep in mind is that your customers will not be able to use credit or debit cards to pay for your products due to the federal regulations applied to banks regarding handling funds connected to cannabis. Your customers will need to pay in cash or use one of the other emerging options, such as paying through phone apps designed for this purpose, so it’s important to make sure that you provide your customers with a way to get cash if they arrive unprepared, such as by installing an ATM. Additionally, cannabis businesses must be prepared to securely handle, transport, and store large amounts of cash since most financial institutions will not accept cash deposits.

Looking for Cannabis Funding in Michigan?

Apply to work with our team for your cannabis lending needs in the Michigan market. We’ll be in touch within 7 business days.

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