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Tips for Building Credit to Get a Cannabis Business Loan

Tips for Building Credit to Get a Cannabis Business Loan

Medical marijuana is currently legal in 33 states as well as the District of Columbia. Cannabis offers a multitude of lucrative business opportunities for dispensaries, growers, product manufacturers, and distributors. There’s a projected market value of nearly $100 billion by 2026. With such a huge potential for market growth, you’re probably wondering how you can build your credit enough so that you can get a cannabis business loan. Here are tips for how to improve your credibility, build your credit, and land that cannabis business loan. Find out how to build credit. 

Make Your Payments on Time 

It sounds almost too simple, but on-time payments make a difference in your credit history and your credit how to build creditscore. It’s one of the easiest things to look at when a lender is considering you for a loan. If you’ve had late payments in the past, be diligent about making payments on or before the due date. It’s important that you’re able to show the cannabis lender that you have a clean-and-clear history of no late payments for at least a few years.  

Keep Your Information Accurate and Current 

You should check your credit report from all three credit bureaus to make sure they are accurate and up-to-date. Checking one or more of your credit reports is an easy way for lenders to gather information about your credit health, history, and risk factor. By regularly checking your credit score, you can immediately resolve any issues and know the factors that could affect your approval chances for a cannabis business loan.  

Develop a Brand 

Your marketing messaging and brand matters. Your brand is your image and promise to your customers and investors. A good brand is an authentic story that compels action and moves your audience to action. You need to prove that you can deliver on your promises to your customers and investors. Your brand is about more than just the image you want your audience to see and understand—it’s about your credibility. Can a cannabis business lender be confident in you and your business model?   

Have a Great Business Plan  cannabis business plan

A business is more than just setting yourself up as a Limited Liability Corporation (LLC). You need a good business plan to demonstrate what you are selling and how you are going to do it. You should demonstrate to lenders that you know the industry, that you are prepared for challenges, and that you have plans for the future. Lenders want to know that you’ve got what it takes to survive as a small business and that you’re a good investment.  

What’s the Next Step?: How CannaBusiness Financing Can Help 

Cannabis business loans can allow you to take advantage of unique and lucrative opportunities. At CannaBusiness Financing, our team of professionals is here to help. To ensure the best chance of approval, you’ll need to have the following details ready for review:  

  • Business Account in good standing 
  • Business records for 6+ months in business 
  • LLC documentation, with a good business plan 
  • Good credit score (500+ or 700+ depending on the amount of the loan and other factors) 
  • Clean background check, with no criminal history 

At CannaBusiness Financing, we pride ourselves on being the go-to source for your cannabis business loan. We know the industry, and we’ve already supported hundreds of start-ups and well-established businesses, as the preferred financing solution. We know what you need, so we work to make the process as streamlined and simple as possible. Contact us today to learn more about funding options that should meet your needs. We’ll answer all of your questions, and get you started with the pre-approval process.  

 

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Posted by Canna Business Team


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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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