CANNABIS BUSINESS LOANS
FINANCING SOLUTIONS
At SK Capital Business Financing
We strive to make this process as simple as possible
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With the growing popularity of marijuana decriminalization and legalization for medical and recreational uses, there are some great opportunities emerging for lucrative businesses in the cannabis industry.
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However, due to the nature of the cannabis-related business or shop, it can be difficult to secure a loan and the necessary financing from a traditional bank or credit union.
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Timing can make all the difference in the success of your cannabis business, so securing financing now as regulations change can help you to develop and establish your marijuana business with plenty of room to grow.
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Dispensaries can offer direct cannabis sales to consumers for medical or recreational use; they often provide access to a number of cannabis strains that are ideal for treating specific conditions or achieving specific effects.
Obstacles to Cannabis Business Funding
Despite the growing popularity and legality of cannabis products in states across the country, the federal government still considers sale, purchase or use of cannabis products to be illegal. This means that obtaining a loan can be difficult because federal banking laws consider banks that offer cannabis business loans to be open to prosecution, and banks are risk-averse even under circumstances that allow marijuana businesses to receive small business loans. This means that FDIC-insured banks will most frequently deny all marijuana-related business loans, even opening a business checking account is not easy and only local credit unions are willing to do it.
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In fact, under 40% percent of all dispensaries even have bank accounts. Despite the popularity, medical benefits and relative safety of cannabis, it remains classified as a Schedule I drug at the federal level. This is the same classification that applies to cocaine, heroin, and other much “harder” substances. While legislation has been introduced to change the scheduling of marijuana, none has yet been passed — which leaves cannabis working capital from your local bank to be a substantial obstacle.
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However, there are alternative options that can help you secure funding for your dispensary or other cannabis-based businesses. Alternative business financing for the marijuana industry is available from specialized and innovative business lenders like SK Capital.
Developing Your Dispensary
As a business owner, getting active in the cannabis industry can be a lucrative path to success. Even if you’ve already been in a cannabis-related business for some time, introducing dispensary services can create a whole new line of marketing for your store or other small business. Cannabis business loans can help to secure your future and ensure you have the funds to continue and expand your business.
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There are a few steps to keep in mind when planning to start a marijuana dispensary of your own, including the following:
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Check the laws: Get to know the laws of your state, including whether the recreational use is allowed, requirements for medical use, the amount which you are allowed to sell and any restrictions on plants. It’s also a good idea to investigate proposed legislation on the cannabis industry. You can also research taxation and how to handle the proceeds of your business in line with the law.
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Verify your eligibility: Some states have restrictions on pursuing cannabis businesses. Check to make sure that you’re prepared for any necessary background checks.
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Investigate your location: Keep an eye out for a rental space that is properly zoned and is open to a cannabis industry tenant. In some cases, you will need to avoid areas near schools, churches, parks or other public buildings frequented by children.
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Develop your business plan: Having a great idea and knowledge and interest in cannabis is not sufficient. You need a business plan to put your dispensary on the road to success. You can use this plan when applying for cannabis business loans.
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Get legal: Your state may require a license for cannabis businesses. Get prepared to apply and pay the fees for your marijuana business license.
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Secure your product: It’s important to keep state law in mind when purchasing or growing your product for sale. Make sure to keep track of your product flows. A good product can make all the difference in your dispensary’s reputation
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You’ve followed all of the procedures and are ready to get going with your marijuana business if you can just secure the necessary cannabis working capital. There are real alternative lenders that offer meaningful alternatives to your local bank and can secure marijuana business funding for your promising enterprise.