Secured Canvas Funding for Your Marijuana Company

By: Dzhingarov

There are many who might be surprised that there are cannabis business loans available to those who are looking to take part in cultivating and growing their very own marijuana plants. With all the talk of pot legalization across the country, many are starting to see the benefits of taking part in this type of activity. While marijuana is still illegal on many levels, it is starting to be accepted as an alternative form of medicine. This has created a new marketplace for those interested in starting their own business or trying to expand their current one.

Those who are new to the world of medical marijuana are well aware of the risks and responsibilities that come with being in such a highly regulated industry. Many have found that simply putting together the required funds to start a business will be difficult. The sudden rise in popularity of this new plant, combined with the fact that it is still illegal on most levels, has created a unique problem. Private funding has been difficult to find, but cannabis loans and other forms of private capital funding are the perfect fit here.

Cannabis loans

Private finance is one of the main reasons that the government has allowed for state regulated commercialization of the cannabis industry. Unfortunately, there are many regulations and requirements that must be met before any type of company can get a license to operate. Because the government is not actively involved in the process, lenders have had a difficult time finding consistent sources of capital. Since there are not any federal restrictions on how these companies are funded, they have turned to local investors and other non-government sources. This has led to increases in interest rates for both lender and borrower, although most have seen improvement in terms of the overall quality of loans.

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The growing number of applications and demand from private lenders has caused significant strain on the current supply chain for commercial cannabis loans. Lenders who offer this type of financing are beginning to experience delays in getting completed applications. This is because the vast majority of application completions are coming from licensed offline sources. While some businesses attempt to mask financial losses with accounting tricks or complex banking relationships, the truth is that most cannabis businesses do not use traditional banking sources.

Private investors and lending institutions will continue to face major challenges as it relates to meeting the growing need for investment capital. Most traditional banks have not approved many cannabis loan applications due to the risks associated with such a large and speculative investment. For this reason, most private investors and third party investment groups have shown a reluctance to provide seed money or equity to new companies. In many cases, companies have used the funds obtained from these small investors to fund their own operations, leaving investors disappointed and cash in hand only weeks after closing. Despite these challenges, it is clear that there is no end in sight to the increased demand for secured cannabis loans.

There are currently several different methods that are currently in development to increase capital infusions for the cannabis industry. Most notably, there are a number of companies in the research and development stage of developing products for the cannabis market. If you are an active entrepreneur with experience working in the field of cannabis, there are numerous ways that you can capitalize on this fast paced industry. By investing in your own marijuana business, you can ensure that you are able to obtain the secured funding that you need to move your project forward.

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