Looking for an MMJ business loan? As the national cannabis industry continues to boom, you’re not alone! This article offers some up-to-date information about how to get a loan to open a dispensary or launch another type of cannabis business. Keep reading to learn how to get the cannabis lending you need.
Do I qualify for cannabis lending?
Getting an MMJ business loan isn’t as easy as many newbie ganjapreneurs think it will be. There are a few reasons for this. Let me explain:
The first major barrier of entry to the cannabis industry is that the federal government still classifies marijuana as a Schedule 1 illicit drug with no known medicinal value.
Sounds like a crock, eh? It is.
Still, BECAUSE the federal government says it’s an illegal drug, lending institutions like banks and credit unions are not permitted to lend money for ventures involving marijuana or other products made from it.
Sad, but true.
So what can an aspiring weed entrepreneur do to obtain the cannabis lending she needs? Let’s check it out closer!
How to get an MMJ business loan
Securing cannabis lending through an MMJ business loan may sound like a simple and fast way to get the money you need to launch the next huge cannabis business success.
Since traditional banks and credit unions are not options until the US federal government (lovely) gives the people what they demand and decriminalize marijuana on a national level, you won’t be able to get an MMJ business loan through them.
Then, how else is there to obtain cannabis lending?
Good question. Here are some of the most common methods people use to get capital to launch a cannabis business:
Self-funding (requires excellent credit)
Borrowing from family & friends (embarrassing!)
Taking on a partner or partners (less control and profit)
Each of the above ways to get money for a canna business has its drawbacks. If you don’t have great credit, have no family that could help even if they wanted to, and don’t really relish the idea of forming a profit limiting partnership, then you still have an excellent alternative:
Private Market Cannabis Lending Investors
There are cannabis-specific investment groups in the free market that are eager to make MMJ business loans. They are happy to support various types of cannabis ventures, like dispensaries, cultivation operations, and edible manufacturing enterprises.
This form of cannabis lending can be a true lifesaver for your plans. However, you should have a fairly strong credit score and expect moderately high interest rates over short loan periods.
How to get a loan to open a dispensary
If you are trying to get an MMJ business loan to open a dispensary, you should be aware that it’s a costly venture. You can’t realistically expect to open a dispensary, even in the worst area, for less than $150,000.
And if you are considering a nice area for your dispensary, you could be looking at pricing in the millions of dollars. Until the federal laws governing marijuana are updated in the US, no bank or credit union will provide cannabis lending for a dispensary or any other type of business within the medical marijuana or recreational marijuana industries.
XXX is a private cannabis lending investment firm that has helped thousands of people obtain MMJ business loans. Contact our friendly, helpful team today and learn more about how we can get you the capital you need to help the world with your amazing weed business! We are here to help.