How do I get financing or a loan for my dispensary or my cannabis business?

At Renaissance Consulting we have decades of lending experience, have sourced or underwritten thousands of loans of varying degrees and are happy to make the following financing options available to you.

The Different Types Of Loans

Personal Loans

The first type of loan in the cannabis space we offer has the structure of a personal loan. This is an unsecured loan with very little recourse to the investor if you don’t pay it back. Because of that, the fees are higher than usual but, the interest rates are very low. Qualifying for this type of short-term financing depends mainly on two factors: What your credit score is and the amount of credit card debt you have. Our clients use these loans to pay for application fees required by the state they want to operate their cannabis business in, and they can use them to cover our consulting costs as well. Our goal with these loans is to minimize your upfront expense and get you through the application phase for your licenses. The loan amounts we offer are starting at 60,000 and can go as high as 200,000 with terms ranging from a few months to less than two years.

Interest Only Loans

The second type of loans we offer is designed to assist you AFTER you’ve been granted your cannabis license to operate for cultivation, processing, and retail or a vertically integrated model that encompasses all three. The most common structure of this kind of financing is a 3-year balloon at 20-25%. These are interest only loans, so you don’t have to make payments on the principal amount that you borrow and given that our clients that chose to hire renaissance consulting to manage their operations achieve a 100% return on investment on an average of 2 years or less, a 3 year balloon is the appropriate structure to get your through this short-term period and onto operational success.

Real Estate Loans

The third way we find funding for our cannabis clients is unique in that it’s asset-backed. This loan structure is tied to the real estate. How it works is that the investor buys the building and leases it back to the cannabis company. The interest rates are low, the main factors taken into consideration are the value of the building, how well the business will perform, and how complete and experienced the operator of the business is. This is where hiring the right team like Renaissance Consulting can make or break your business. The terms of this type of financing can be as long as thirty years to spread out the cost for you. Often there is an escalator put into the contract that can allow the investor to share some of the risks with you in the first few years but then shares in the increased profits as the business continually improves. You need to make sure this escalator is calculated in a realistic, experienced-based manner, so you don’t set your cannabis company up for failure.

Learn More About How You Can Open Your Cannabis Business!

If you’d like to talk further about anything from finding capital, creating a brand for you, writing the application for your license to operate, compliance audits, or services that offer both short term and long term consulting options for cultivation, extraction, distribution, delivery, or retail dispensary solutions, reach out to us. If you’d like to continue to receive educational updates concerning the business of cannabis, you can find those on our renaissance consulting youtube channel. Thanks for tuning in and have an outstanding day.