A cannabis loan is an opportunity for individuals or corporations to secure funding for their cannabis related business. With more and more states legalizing recreational marijuana as well as medical marijuana, it is important for business owners in this industry to be able to receive funding. Learn more about cannabis loans to see if it is the right type of hard money loan for your project.
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What Is A Cannabis Loan?
A cannabis loan is a capital loan that is specifically for businesses who operate in the cannabis or CBD industry. This loan will help the individuals or corporations secure the capital they need start their business, repair their property, or keep their business afloat. There are a wide variety of businesses that can benefit from a hard money cannabis loan such as marijuana dispensaries, CBD oil shops, manufacturing facilities, growing farms, and more.
Finding funding for your cannabis business can be difficult if you are working with a traditional banking institution such as a credit union. However, hard money cannabis loans come from private real estate lenders which makes it easier for individuals to secure capital. A hard money cannabis loan is a great option for those who need the capital to invest in real estate for their business, or for those who need capital to improve systems and operations of their business.
What Are The Benefits of A Hard Money Cannabis Loan?
Hard money loans are popular because of how quickly they are able to secure funding for individuals and corporations. A typically bank will often times take multiple months to get capital for your business, but a hard money loan can be secured in as little as a few days. This benefit is vital for cannabis loans because the cannabis and CBD oil industry is so new that everything is moving so quickly. If you are stuck waiting on funding it allows your competitors to gain traction on you that can be difficult to make up.
A hard money cannabis loan allows you to secure funding quickly but it also has a variety of other important benefits, like the ones listed below.
- Funding deals have quick closing times that can be finalized within just a few days.
- Terms, rates, and deals are highly flexible to help make them work for both parties.
- Since hard money cannabis loans come from private real estate lenders there are less regulations and qualifications required to secure funding for your business.
Common Types of Cannabis Loans
Cannabis loans are used to describe business loans across the entire industry, but there are a wide variety of different types of cannabis loans. These different types of loans are designed for specific projects and offer benefits for certain situations and project types.
Recreational Dispensary – Many traditional banking institutions have been hesitant to loan to dispensaries, but private lenders have jumped into the industry full-heartedly. Private lenders are ready to invest in the dispensary space because of how quickly it is growing and their flexibility helps to build better deals for both parties.
Cannabis Growing Operations – A cannabis loan can help individuals or corporations secure the capital they need to build a cannabis growing facility. These types of facilities often times require a large amount of upfront capital for their property and equipment. But hard money cannabis lenders are willing and ready to help you secure capital for your growing operation.
Medical Marijuana Dispensary – A medical dispensary is similar to recreational but focuses only on medical marijuana. Private lenders are available to help businesses secure capital to start or grow their medical dispensary.
CBD Oil Shop – CBD oil has grown in popularity all across the country. If you are looking to start a CBD oil shop or are looking for capital to grow your current store, then a cannabis loan can help you secure the cash you need to grow your business.
Other Types of Private Real Estate Loans
If you are looking for a private real estate loan but don’t know which loan type is the best option for you then we recommend you read through the other popular types of hard money loans.
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