Three Options to Get Cash for Your cannabis Equipment Financing Needs
Posted by andrewpaul on June 5th, 2021
Whether your intention for 2021 is to launch a new company or expand your current cannabis sales, there are many different ways to obtain the much needed cannabis equipment. First, consider whether used or new equipment is better suited to your circumstances. Of course, new equipment usually comes with all the latest bells and whistles. However, used gear will be slower to prepare and may need some upgrading before it is used on a regular basis. It will also cost more to purchase and may not be covered by your insurance.
Once you have determined the type of equipment you need, you can start looking at capital options. One option would be to get a loan from a local bank or credit union. These banks generally have minimum credit requirements (as well as interest rates) but they do offer cannabis equipment financing at reasonable interest rates. A co2 extraction system will cost you a lot less to purchase than an average hydroponic system, so this option makes good financial sense if you have a small budget to work with. Your operating costs will also be less once you have paid off your loan.
You may also want to look into a cannabis equipment leasing program from a local finance institution. Finance companies offer lower interest rates for loans than most traditional banks. This lowers the risk of lending money to individual entrepreneurs. However, the rate may not be as low as the federal funds rate, which may be as high as 18%. However, most finance companies will still be able to provide you with competitive interest rates when financing a standard greenhouse.
One way to get equipment that will help grow your business is through tax liens. When you are growing cannabis, you need to have access to all of the tools that are needed for the cultivation and harvesting process. The equipment that you obtain through tax liens will make your job easier and will save you time and money. It is important that you research the process of obtaining these liens before you invest your money in this type of cannabis equipment financing. There are certain regulations that must be followed in order to ensure that your investment is secure and there are several liens that are strictly applied to certain areas in the United States.
You can obtain cannabis equipment financing through a number of alternative lenders. Most people who are starting cannabis businesses use a local network of family and friends. This approach allows them access to loans that are not easily accessible through larger financial institutions. If you have a lot of friends and family in the cannabis industry, then your social networks can provide you with contacts for potential financing options.
While your friends and family may be able to offer you some loans that you cannot get from traditional lending institutions, you should also consider using other financing options. Some companies have made cannabis equipment financing options available online. These companies can help you obtain the loans that you need through secure online forms. If you want to try another method for obtaining loans to grow and cultivate your cannabis business, then consider looking for financing options on the web.
One of the most secure ways to find financing for your cannabis equipment financing is to go with a local private lender. Although this type of loan is usually referred to as a "hard money" loan, you should know that there are some advantages to working with a private lender. The first advantage is that you can work directly with the lender. You will only need to present your personal and business information to the lender instead of having to go through a broker or sales person. If you want to work directly with a local lender, then you may want to keep in mind that the interest rate that they will charge you may not be the best deal for you.
Another option to consider for obtaining cash for your cannabis business is to work with a higher risk merchant lender. These lenders specialize in providing high risk merchant financing to qualified borrowers. When you use a high risk merchant lender, then you will be working with a lower interest rate. However, you may have to come up with a higher down payment because of your increased risk level. In addition to a lower interest rate, you may also be required to provide security for the loan, such as collateral or an asset.
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About the Authorandrewpaul
Joined: December 19th, 2020
Articles Posted: 122
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