The marijuana industry is heavily constricted with legal red tape. Although it’s starting to loosen up in 2020, it’s still difficult to get Hemp Business Loans for a startup cannabis business. Marijuana is still an illegal, controlled substance on a federal level in the USA. Currently the FDIC will not insure traditional major bank loans for businesses that depend on this currently-illicit substance.
Alternate Ways to Get Hemp Business Loans
The United States continues to trend strongly toward full marijuana decriminalization, therefore many aspiring entrepreneurs are excited to break into the lucrative cannabis industry. Therefore there are record numbers of applicants for cannabis business loans, CBD business loans, hemp business loans, and various other types of cannabis financing.
It is not likely that you’re going to walk into Wells Fargo and obtain financing for your startup cannabis business. However, there are several options for getting the working capital you need. Especially if you have excellent credit and a brilliant business idea.
Regardless of your credit score (ideally you should have a 700+ score), you should approach a cannabis lender for a Hemp Business Loans with a polished presentation of a well-developed business plan. Although this industry is still a budding baby, it is gaining a lot of attention and creating a lot of demand for companies that finance marijuana businesses. That means they stay busy making loans and competition for the funds is tight.
Federal laws currently prohibit the largest banks from extending Hemp Business Loans. The cannabis industry is poised for rapid and massive growth. Current set of federal marijuana laws stands in the way of this looming economic juggernaut.
So, how is an ambitious marijuana entrepreneur to get the investment capital required to gain entry into the cannabis industry without the help of major banks?
Many startup cannabis business owners take out second mortgages on their homes. Others secure collateral-based lines of credit, or max out their credit cards. Some also turn to family for financial assistance.
There are some small banks and credit unions that might extend a cannabis business loan. However it is rare and unlikely. Snoop Dogg’s Casa Verde is a major cannabis industry lender. However you will need to have a very polished and professional business plan ready to impress before approaching them.
Hemp Business Loans and Cannabis Financing still have limited options. Luckily here’s some good news: Cannabis Credit Lines specializes in securing financing for businesses that operate within the cannabis industry. Traditional banks are nearly impossible. We can provide a 0% introductory loan on the investment capital you need to launch and grow.
Contact our skilled team of finance professionals today at (888) 699-2298 or here. Let’s discuss how we can help you get the weed loan you need for your existing or startup cannabis business. Via our network of banks and private investors, we’ve arranged multiple millions in Hemp Business Loans for startup cannabis businesses.