Cannabis Industry Working Capital

Working capital is an important component to a new and growing cannabis business—this key financial piece is essential to ensuring that your daily operations are well funded. On a regular basis, working capital is utilized for daily business needs such as payroll and bills as well as other routine operational needs. As a business owner looking to grow and expand, working capital also plays a huge role in your ability to achieve that desired growth.

Common Uses of Working Capital 

• Purchase Inventory/Equipment: Before you can begin to sell, you need to create. In order to create, you'll need funds. If you're starting out and are a business that needs to stock inventory, you will need working capital to make those initial purchases. In the same vein, if your business requires equipment of any kind you will need to invest in leases or purchases for that equipment.
• Marketing: Whether you're just starting to get your name out there or deciding to ramp up your strategy, you'll likely need to set aside a decent budget for marketing endeavors. Marketing is an investment in your business, and to make that investment, you'll need to use working capital to achieve your desired marketing outcome.  
• Hiring/Employees: In order to start or grow a business, an investment in the people who keep your business running is a monetary necessity. Payroll is a primary need for ample working capital. 
• Taxes: Payroll and income taxes are immediate responsibilities that require regular payment quarterly by a business. Having working capital on hand in order to meet these payments will ensure that your business remains compliant and does not owe on the taxes due. 
• Unexpected Expenses: As an owner, oftentimes you have to expect the unexpected and prepare. Having sufficient working capital to allow for wiggle room during unforeseen events is important. 

Get Working Capital for Your Business

Achieving the desired amount of working capital isn't always easy, which is why taking out a loan or line of credit can help your cannabis business immensely. Getting the working capital you need is quick, allowing you to get to business as soon as possible. Our objective is to obtain the maximum amount in freely spendable unsecured personal term loans and Business Credit Lines that you can use to start, build, and grow your business. You can use these lines to launch a marketing campaign, pay for travel expenses, down payments on properties, rehab expenses or anything else your business requires to grow and operate. 

Qualifications for Term Loans & Credit Lines

• Minimum current FICO scores should be 700+. NAV, Credit Check Total, Credit Karma, etc. should be 700+
• No public records (BK, tax liens, judgments), collections, or charge-offs on file
• No late mortgage payments, short-sales or foreclosures on file
• No late payments in the last 2 - 3 years, and No chronic lates (60 days+) prior to that
•  Less than 3 inquiries per bureau within the last 6 months
• At least 5 years of credit history
• Total revolving credit limits > $25k; $50k+ is ideal.
• Utilization on major credit cards should be less than 30%. We have specialized strategies to help clients with high utilization.
• Established Business, Corporation or LLC, with an EIN

Getting Started With CannaBusiness Financing 

Each applicant can qualify for up to $250,000 and receive a pre-qualification within 48 hours. The Canna Business team is knowledgeable about which lenders are the best fit for each of our clients. Our pre-qualification process ensures that our clients have the highest quality credit scores and credit profile before we submit any applications. With the appropriate loans and lines of credit, you will be able to put your newfound working capital to good use.

Helpful Resources

Best Ways to Utilize Cannabis Working Capital

What Documents Do I Need For Cannabis Working Capital

How Much Working Capital Do I Need For My Dispensary?