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How to find a loan for your cannabis business?

The underserved cannabis industry, as it pertains to financial services, is a minefield to be navigated only by the intrepid and savvy. The dearth of lending options in the cannabis sector, and banking options, make it uniquely difficult to obtain debt financing. And there is no shortage of pitfalls and misleading brokers.


Fact or Fiction: Cannabis Equipment Leases at 5% APR

Recently, in our survey of the online content the cannabis lending industry, we found examples of claims about cannabis equipment leasing rates that made us cringe, and to be honest, chuckle. One example, was a cannabis equipment leasing web page that touted the following highlights of their cannabis equipment lease program:


Can I get a loan for my Cannabis Startup business

At HEF Finance, we get this question usually a few times a week. And, we always say that we have executed many loans for startups and pre-revenue companies for public and private companies in both the U.S. and Canada. That said, like all cannabis loans, the business needs certain ingredients to execute a loan successfully.


How do I negotiate rate and term for cannabis loans?

If someone hands you a term sheet for a loan in the cannabis industry that is bankable, and the interest and cost of closing is higher than what you’d get in other industries, but not so high that you can’t be profitable by taking it, then sign the term sheet and send that funding source a fruit basket after closing.


Cannabis Direct Lenders: when does it pay off to use a single source for a cannabis loan?

No one wants a lot of brokers between their business and their credit facilities. To be fair, some brokers do a good job of qualifying and packaging a credit request for a lender, or lenders who fit the criteria of the borrower well. HEF Finance currently has a network of 139 brokers who essential “white label” HEF’s underwriting and acquisition services. All that said, we get the question frequently: “are you direct lenders?”


How to use Debt to Obtain Equity Financing for your Cannabis business

Raising equity for a startup can be a painful experience. Investors have their own timeline, and sometimes the ups and downs of their deliberation can make you feel like you are on the one-yard line, or you are facing a fourth and long. We’ve all been there for the jubilance of the post meeting glow from an enthusiastic investor only to meet the reality of their inexplicable disinterest in the project shortly thereafter.


Costs of Executing a Cannabis Real Estate Loan

Cannabis real estate and real estate/construction combination loan requests continue to rise. At HEF, we review daily with prospective borrowers the estimated costs of rate and term, as well as the typical costs to get a loan to the closing table. With that said, it’s important to understand regular use property valuations vs cannabis property use valuation to understand the cost of the money as there is a big variance.


Can cannabis companies get bank loans? Yes, but there’s a catch.

In the cannabis, MJ, hemp, and CBD world, obtaining debt financing can be uniquely challenging. Having underwritten various types of cannabis loans, we are constantly searching for new sources of debt capital that can help borrowers in a financially restricted market. Over the years, we’ve heard rumors of banks and credit unions that are participating in the lending space.


Are Cannabis Loan Interest Rates Offensive

Internally, our team reviews around 3000 lending scenarios a year with cannabis related businesses. A fraction of those scenarios become clients who engage us to obtain bona fide terms. The cannabis industry is unique in its relative maturity still projected to grow dynamically (industry growth projects to increase from $33 billion this year to $84 billion in 2028).


Cannabis Sale Leasebacks - A breakdown of how they work

If your cannabis business owns real estate, and needs capital, one potential financing option to look at is a sales leaseback (SLB).


HEF Finance: 420 Loans and Cannabis Business Financing trends in 2023

Welcome to HEF Finance, your trusted partner for 420 loans and cannabis business financing.


How will the potential Rescheduling of Cannabis to a Schedule 3 drug effect the financial services offered by banks?

The rescheduling of cannabis from a Schedule I to a Schedule III drug would


Ignorance is Bliss and Fantasy is Expensive in the Cannabis Debt Capital Markets

The cannabis banking and financial services sector has had unique challenges and evolution, ...


Cannabis Business Loans: Navigating Banking Restrictions and Business Realities

We’d love nothing more than to tell our prospective borrowers in the cannabis industry that mainstream bank loans are right around the corner ...

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