As multitudes of entrepreneurs in the United States continue to pour into the recreation and medical marijuana industries, the hemp industry, and the CBD industry, cannabis lenders are in record high demand. That’s largely because marijuana is still illegal on a federal level, which means that the FDIC and SBA are legally prohibited from insuring cannabis business loans. This leaves private alternative funding sources to provide the multiple billions of investment dollars required to fuel this burgeoning economic giant.
Tips for Approaching Cannabis Lenders for Loans
If you are considering applying for a loan from a cannabis lender, then you need to be aware of some pertinent information that can save you and the cannabis lenders from wasting one another’s time. Consider the following cannabis industry insider tips:
Tip #1: Be Professional
Let’s face it: there is no shortage of people trying to start marijuana businesses right now. It’s an excellent time for entrepreneurs to position themselves in what is projected by many experts to be a $1 trillion global industry in the near future. The sheer number of people trying to gain entry makes competition for obtaining funding difficult.
So, when you approach a cannabis lender for investment capital or working capital, you need to bring your best game. Have your detailed business plan ready. Show the lender that you have done extensive research and know what you’re talking about. Tell the lender how much money you need, why you need it, when you propose paying it back, and on what terms.
Tip #2: Bring Proof of Your Claims
Cannabis lenders are inundated daily with unsubstantiated claims about product or service superiority. If you are approaching a funding source because you believe you make the best-tasting CBD tincture, then bring some for the lender to experience. If you claim to grow the best new strain of medical cannabis, then bring a lab report showing its THC content and other relevant sell points.
Tip #3: Get Your Credit Score Up
Most private cannabis lenders want to see personal and business credit scores of 700 or better. The competition for cannabis business loans is fierce and growing meaner. Make sure your credit score is up to par before applying for a capital loan from companies that fund marijuana businesses. It’s also a good idea to bring proof of any successful investments you have benefited from in the past.
Cannabis Credit Lines maintains professional relationships with a network of high-quality cannabis lenders. Call us today at (888) 699-2298 if you are looking to start up a marijuana dispensary, launch a medical cannabis cultivation operation, begin manufacturing CBD edibles or other products, or need any other cannabis business loan, hemp business loan, or CBD business loan. We have the resources, connections, and expertise you need to secure funding quickly. You may also apply here and will received a pre-approval within 24 hours.