Cannabis offers growth opportunities for dispensaries, cannabis growers, manufacturers, and distributors, with a market value of nearly $100 billion, projected by 2026. However, growth in your cannabis business usually means that you’ll need to buy new equipment or upgrade your existing machines to support your cannabis growing, distribution, and packaging.
Equipment costs may vary depending on your current infrastructure, where your business is located, and your capacity to support expansion. Since the cannabis industry presents unique funding challenges, you’ll also need to consider viable financing options to support your equipment needs.
Equipment loans through traditional lenders or banks offer financing based on assets or other collateral. A cannabis equipment loan isn’t too different from an equipment loan in other industries, but it does take your needs into account, as well as the industry you’re in, with the offer of equipment loan options.
Depending on your business needs and your unique dispensary-growth situation, you may consider buying new or used equipment. While you may prefer to buy new cannabis equipment, you may need to consider other options in the interests of cost and accessibility for your business. You can find great deals on older equipment, and you can even find machines that you can repair to get them back to running like new.
Leasing is ideal for those situations where you require cannabis equipment that you will need to replace often, but financing may offer greater flexibility. The financing route, which creates a pathway to equipment ownership, allows you to pay off the cost of the machines and equipment over time, which allows you to maintain a healthier cash flow for your business.
As part of the equipment loan process, you will need to determine whether you require a variable rate or a fixed rate. With a fixed rate, you get more stability, but a variable rate may be a better deal because your monthly payments are typically lower.
While you’re considering your cannabis equipment loan options, you should also look at what equipment you’ll need now and in the near future. It’s likely your list will include security equipment like alarms, surveillance equipment, and storage, but you’ll also need HVAC units, lighting equipment, and even CO2 extractors. Consider what you’ll need and where you might need to purchase the equipment.
Lenders want to know that you’re dedicated to the success and growth of your business. They may also want to know that you have the background, knowledge, and skills to succeed with your cannabis business. Not every business will be approved for a cannabis equipment loan, so what can you do to improve your profile to better ensure your chances of getting that equipment loan?
Here are a few questions you can ask yourself about your business.
With cannabis equipment options, carefully consider what you need to do to ensure you’re approved for the financing you need. In most cases, if you’ve been running your business effectively, you can just gather your records and prove that you’re a worthwhile investment opportunity for lenders and investors.
Your success will speak volumes. It will demonstrate your passion for your business, but also prove that you know what it takes to make your business grow and resonate with your audience in the future. When you differentiate your dispensary and brand presence online and off-line, you make an impression that you’re a “safe” and worthwhile investment.
At Canna Business Financing, we’re the top choice for cannabis equipment loans, and that’s not by accident. Cannabis equipment loan options allow you to buy or lease the equipment that will support the growth and future success of your cannabis business. So, we’re here to offer consulting, recommendations, and tips that will help you get approved.
With our experience in the cannabis industry, we focus on what you do, how you do it, and what you can do better to give you a competitive edge. We help you get the financing you need to buy equipment and handle every other aspect of your cannabis business growth.
At Canna Business Financing, we have the experience you need as the experienced go-to financing solution for hundreds of start-ups and well-established businesses. Contact us today to find out more about equipment loan options that will help you grow and stay ahead of your competition. We’re here to consult with you, answer your questions, and work with you. You can get pre-approved within 48 hours.
Posted by Canna Business TeamFacebook
In an industry that is constantly evolving, Canna Business Financing provides business owners with a reliable source to gather the most up-to-date information. From resources to fund the growth of your business to insights on best practices to scale, look no further!