By Anie Delgado
The cannabis industry is often thought of as a 21st Century gold rush. Cannabis enthusiasts, business characters, and savvy investors alike are jumping at the opportunity to claim their stake in the rapidly growing industry. In many ways, the cannabis industry is like the Wild West. Washington’s apprehension to legalize cannabis federally is one of many obstacles cannabis entrepreneurs are faced with. In the dawn of a new age for cannabis, the regional disparity is leaving entrepreneurs strapped for funds to get their business ideas off the ground.
The team at Lender420.com consists of long long-time bankers and financial professionals and noticed the blaring lack of opportunity for cannabis entrepreneurs to obtain capital from banks or traditional loan companies. Capable, smart and savvy entrepreneurs were being turned away and Lender420.com created something to offer the growing industry. Now, Lender420.com is in order to offer the cannabis industry this vital, missing piece: 420-friendly funding.
What are your time and effort worth? Often times, entrepreneurs feel pressure to sign away part of their equity in exchange for investor capital to keep them afloat; but, it doesn’t have to be that way. Successful business people know that taking out a loan is an integral part of a company’s foundation story. Being strategic about what type of loans a business owner takes out can set them up for the most success by providing them with the capital they need and ensuring that in the long term, they are keeping all of their hard-earned revenue. Likewise, this allows the entrepreneur to run the company as they choose. We encourage entrepreneurs to build lending into their business plan, so they are set up for success before taking out the loan.
The New Startup
Startups are traditionally difficult to fund and having a cannabis-related startup adds another layer of complication. The tech startup industry has relied on angel investors, crowdfunding, and venture capitalists, but the same investors aren’t always as willing to sign onto a cannabis-related project with the inconsistency in legislation. Even so, developing a relationship with an investor comfortable with a cannabis-related project can take years only to result in giving up your hard-earned equity and creative freedom.
We’ve done the heavy-lifting for entrepreneurs. We’ve spent years developing relationships with lenders that are excited about cannabis-related businesses. Our goal is to offer advantageous loans to qualifying individuals who will keep the cannabis industry innovative and growing.
Many cannabis business plans require a significant amount of overhead when it comes to equipment. Equipment financing is a great way to afford the best quality equipment for your company without continually wasting cash flow on a lease. Equipment financing is a great option for entrepreneurs who have some capital available to them but need to supplement their overhead costs with a loan. Instead of taking out unsecured capital, for some entrepreneurs equipment financing is a great way to meet your needs while only borrowing what you really need.
Cannabis entrepreneurs are often-times tasked with finding 420-friendly real estate where they can set up operations. This can come in many shapes and sizes: farmland for a grow opp, green tenant-friendly store-fronts for dispensaries, and more. Purchasing real estate versus renting is always advantageous. Owning real estate leaves business owners with a smaller monthly payment and allows them to work toward adding the property as an asset to their company. If you plan to sell your business in the future, this property adds value to your company and if you plan to operate long term, you will eventually eliminate this part of your overhead versus being tied to an expensive lease.
The bank has often turned down companies that do business with cannabis-related companies. Some examples are packaging companies, testing companies, transportation companies, security companies, auxiliary food services, and more. Lender420 can help these types of businesses with revenue-based business loans. We are able to work with credit challenges and are able to make faster decisions than traditional lenders.
The best qualification a cannabis entrepreneur can have is preparedness. The more solid your business plan means the more information we have to get you the most advantageous loan possible. Commonly, cannabis entrepreneurs aren’t sure how much money they need or what they want to use it for. Doing some reflection on these questions can make the process faster and ensure that you are taking the right amount of capital out. Most business loans require applicants to have a good personal finance background. It’s best to ensure that your personal financial situation sets you up for success before pursuing a loan.
Our team has a diverse area of expertise from real estate to equipment and beyond. We are driven to help cannabis entrepreneurs achieve their goals and grow their businesses. For more information visit Lender420.com, email us at firstname.lastname@example.org, or call us at 424-256-3090.
Anie Delgado is the Marketing Director of Lender420.com.Delgado has contributed to CannabisTech.com, Nug Mag, Popdust, Atwood Magazine, Greatist.com among many other publications. email@example.com