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How Cannabis Businesses Can Financially Recover From COVID-19

How Cannabis Businesses Can Financially Recover From COVID-19

COVID-19 has had a dramatic impact across the world, draining the financial capacity of thousands of businesses and the clients they serve. The cannabis industry is no different, suffering a drop in revenue in many locations while people struggle with disposable income. You might be exceptionally worried that, due to the nature of your business, it might be harder to recover from the economic downturn—especially when aid for our sector is scarce. 

Luckily there are options to help keep your business afloat and move into 2021 with a fresh outlook and a buoyedcannabis business covid-19 business, reaching new customers and feeling confident about the future of your company. With the proper assistance, you should be able to feel a bit less stressed about the future and better able to plan how to bounce back from the pandemic's negative economic effects.

Missing the assistance

While the government provided quite a bit of stimulus and small-business aid with the CARES Act, there wasn't any aid allotted for cannabusiness due to the federal view on cannabis products. This coupled with the curbside-only restrictions for businesses on top of the already restrictive nature of cannabis laws made it difficult to operate—especially in the first few months of lockdown. If your business suffered, you're not alone. Unfortunately, even with new stimulus potentially on the horizon, it's unlikely cannabis-based businesses will see a dime.

This is restrictive and unfortunate, but it's best to be pragmatic about the situation. As a cannabusiness owner, you cannot expect the government to help you and instead, you will need to look for other options for improving the financial climate around your company.

Cannabusiness financing

While there are lenders who are probably wringing their hands about lending right now, especially to a cannabis business, you will find that cannabis-centric lenders are far more likely to help you in these dark times. Let's look at some ways a cannabis lender can help your business.

Credit lines

A cannabusiness line of credit can help you allocate funding exactly where you need it. A line of credit gives you purchasing power, but it also allows you to pay for bills, advertising, rent or anything else that you need. You pay on it monthly the same way you would a traditional credit card, and you can often use the equity of your business to increase it when you need to. These lines of credit are revolving, and after they're approved, you can simply draw on them when needed.

Working capital loan

These working capital loans are designed to help you keep your inventory up and anything else related to running your business. These loans differ from lines of credit because:

  • You are given all of the money at once, like any traditional loan, and you pay on it based on the total amount. Lines of credit only require you to pay a minimum monthly based on what you've used thus far.
  • Working capital loans will almost always be bigger than a line of credit given to you. It's worth speaking with a professional to figure out which is best for your business.

Don't fear the future

With financing solutions from credible cannabusiness lenders, you can turn this economic crisis into a thriving opportunity for your business. Speak with our team today to get approved in 48 hours.

Posted by Canna Business Team



About The Blog

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!

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