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.+ CONTINUE READING
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:+ CONTINUE READING
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.+ CONTINUE READING
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.+ CONTINUE READING
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?”+ CONTINUE READING