{"id":14,"date":"2020-02-19T20:00:32","date_gmt":"2020-02-19T20:00:32","guid":{"rendered":"https:\/\/cannabiscreditlines.com\/blog\/?p=14"},"modified":"2020-05-23T17:37:40","modified_gmt":"2020-05-23T17:37:40","slug":"cannabis-business-funding","status":"publish","type":"post","link":"https:\/\/cannabiscreditlines.com\/blog\/cannabis-business-funding\/","title":{"rendered":"How to Get Approved for Cannabis Business Funding"},"content":{"rendered":"<p><span style=\"font-size: 14pt;\"><strong><span style=\"color: #242a2f;\"><span style=\"font-family: Calibri Light, serif;\"><i>Cannabis business funding is almost non-existent in the traditional banking industry. Traditional banks and Lenders will typically only approve a business loan or line of credit for roughly 10-20% max <\/i><\/span><\/span><span style=\"font-family: Calibri Light, serif;\"><i>of the yearly gross revenue that the business made the year before.<\/i><\/span><\/strong><i> \u2013 <\/i>Almost every major savings and loans bank in the US.<\/span><\/p>\n<h2><strong>Cannabis Credit Lines helps startup and existing business owners obtain more working capital through their proprietary lending techniques and proven experience in consulting with business owners on how to obtain Cannabis business funding<\/strong><\/h2>\n<p>This table gives a short summary to the Underwriting Guidelines for Cannabis business funding:<\/p>\n<table border=\"1\" width=\"459\" cellspacing=\"0\" cellpadding=\"7\">\n<colgroup>\n<col width=\"138\" \/>\n<col width=\"139\" \/>\n<col width=\"138\" \/> <\/colgroup>\n<tbody>\n<tr>\n<td bgcolor=\"#b4c6e7\" width=\"138\" height=\"32\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><span style=\"font-size: medium;\"><b>Underwriting Requirements to Get Approved<\/b><\/span><\/span><\/p>\n<\/td>\n<td bgcolor=\"#b4c6e7\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><span style=\"font-size: large;\"><b>Cannabis Credit Lines<\/b><\/span><\/span><\/p>\n<\/td>\n<td bgcolor=\"#b4c6e7\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><span style=\"font-size: large;\"><b>Other lenders<\/b><\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Good Personal Credit Score (Minimum 700 and above)<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>YES<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Yes<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Funding Up to $250K *per borrower<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>YES<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Yes<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Introductory Interest of 0% for 12 Months<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>YES<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><b>No<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Collateral (Secured)<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Not required<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><b>Required<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Personal and Business Tax Returns<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Not required<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><b>Required<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Bank Statements<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Not required<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><b>Required<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Balance Sheet<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Not required<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><b>Required<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Profit and Loss Statement<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Not required<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><b>Required<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"12\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Personal Financial Statement<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Not required<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><b>Required<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td bgcolor=\"#ffffff\" width=\"138\" height=\"11\">\n<p align=\"CENTER\"><span style=\"color: #000000;\">Subject to Annual Review<\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"139\">\n<p align=\"CENTER\"><span style=\"color: #00b050;\"><b>Not required<\/b><\/span><\/p>\n<\/td>\n<td bgcolor=\"#ffffff\" width=\"138\">\n<p align=\"CENTER\"><span style=\"color: #000000;\"><b>Required<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><strong>Banks can issue Non-Traditional Lines of Credit just like any credit card in your pocket that the business may use to make purchases and other transactions. Non-Traditional bank lending techniques have allowed for less restrictions in place to approve a business line of credit application. A Non-Traditional Line of Credit can become approved through meeting the following criteria:<\/strong><\/h3>\n<ul>\n<li>Personal <a href=\"https:\/\/www.fico.com\" target=\"_blank\" rel=\"noopener\">FICO<\/a> <a href=\"https:\/\/cannabiscreditlines.com\/\">Credit Scores<\/a> ranging from Okay to Excellent.<\/li>\n<li>Utilization Percentage and Available Credit Balances. Creditors care about how much you credit you utilize and what available credit space you have on your credit report.<\/li>\n<li>Debt to Income Ratio. Creditors care about how much your monthly bills are in relation to how much income you make monthly.<\/li>\n<\/ul>\n<p>In a Non-Traditional Business Line of Credit, each bank has its own standards for approving credit limits based on the borrower\u2019s profile and what that creditor values in considering an amount in approving an application.<\/p>\n<p><span style=\"color: #000000; font-size: 14pt;\">Here\u2019s how the process normally looks like for getting a Traditional Loan from a bank or lender:<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>You walk into a bank and ask for a business loan. The banker starts building your offer and begins to ask questions and information about you and your business to qualify you for one of their loans.<b> <\/b>Traditional bank loans are more restrictive in their underwriting guidelines, meaning they want to see more in-depth analysis of the borrower\u2019s financial profile.<\/p>\n<h4><span style=\"color: #000000; font-size: 18pt;\">For Amounts less than $100,000, most banks and lenders follow these underwriting guidelines to approve a Term Loan or Line of Credit application:<\/span><\/h4>\n<p>&nbsp;<\/p>\n<ul>\n<li>The process usually takes about 3 months to underwrite\u00a0Cannabis business funding<\/li>\n<li>A sound business plan showing the opportunity, the target market, the business model, a marketing and sales strategy, the competition, a financial analysis with projections for the near and far future, background of the team of owners and staff and their experience, implantation plan with an outline for the timeline of events.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>2 years personal and business tax returns\n<ul>\n<li>They require at least 1 year showing profit<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>6 months of Bank Statements to show liquidity and the power to repay the loan within the first initial time frames<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>A Profit and Loss Statement to measure all the expenses and revenues of the business<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>A Balance Sheet to measure and show all assets, liabilities, and owner\u2019s equity or stockholder\u2019s equity. This is very useful in determining the amount of the company\u2019s working capital<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>A Personal Financial Statement to list a schedule of all the owner\u2019s assets and liabilities<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>Good personal FICO Credit Scores to show the borrower\u2019s character and credit history in repaying any debts in the past and present<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li>A clear measurement of your Debt-to-Income Ratio. This is a useful strategy in measuring and determining how much money you have left over after you have finished paying all your obligatory bills and have leftover money available to spend for repaying a new loan that you are considering to take on to expand your business.<\/li>\n<\/ul>\n<p>The same underwriting guidelines for Cannabis business funding can be applied for amounts higher than $100,000 including the requirement of having a minimum percentage amount of cash reserves to have available from borrower\u2019s own bank account at all times.<\/p>\n<p>Once all these requirements for underwriting have been met and satisfied, these banks and lenders will typically approve a credit limit equivalent to roughly 10-20% max of the yearly gross revenue that the business made the year before.<\/p>\n<p><b>So as a Startup Cannabis Company, one quick and easy solution to get Cannabis business funding can be solved by getting funded with Cannabis Credit Lines!<\/b><\/p>\n<p><span style=\"color: #242a2f;\"><span style=\"font-family: Calibri Light, serif;\">You may complete an application <a href=\"https:\/\/cannabiscreditlines.com\/application\">here<\/a>.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cannabis business funding is almost non-existent in the traditional banking industry. Traditional banks and Lenders will typically only approve a &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/cannabiscreditlines.com\/blog\/cannabis-business-funding\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;How to Get Approved for Cannabis Business Funding&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":103,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-14","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cannabis-business-funding"],"_links":{"self":[{"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/posts\/14","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/comments?post=14"}],"version-history":[{"count":14,"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/posts\/14\/revisions"}],"predecessor-version":[{"id":605,"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/posts\/14\/revisions\/605"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/media\/103"}],"wp:attachment":[{"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/media?parent=14"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/categories?post=14"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscreditlines.com\/blog\/wp-json\/wp\/v2\/tags?post=14"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}