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Cannabis Business Loans & Financing

Updated: Aug 22, 2023

You can skip this article and get a loan for your cannabis business here.


You're in the cannabis industry - Look how far we've come! It wasn't too long ago that cannabis cultivation and the businesses around marijuana consumption and distribution were frowned upon by our state's legislature...

Check out these other posts:

What loans or financing options are available for my cannabis business?

A Brief History & Current State - Cannabis Business Loans

I live in California - the OG of marijuana decriminalization. Most of you know that California was the first state in the union to allow medicinal marijuana. The Compassionate Care Act was passed all the way back in 1996. And today, recreational cannabis use has been been decriminalized in California. This has opened the doors to a new frontier of businesses around cannabis. And now, many of you out there in the ether enjoy some of the same freedoms (depending on where you reside).

But in some ways - we are still behind when it comes to cannabis industry. In fact, the cannabis industry has suffered incredible challenges. Cannabis cultivation, distribution, and retail around cannabis and cannabis related products is highly regulated - at least here in California. Many entrepreneurs were born out of the changes in our state's laws only to find that they were entwined in a messy web of cannabis taxation and regulation - and even though these cannabis businesses are susceptible to even more challenges to opening a business - they are not given the same financial instruments such as business loans and working capital loans to make sure that they have the capital they need to run their day to day operations.

Most of us know that the cannabis industry is highly regulated, but unfortunately, this regulations do not offer the advantages of loans. SBA loans and other federally backed or underwritten loan products will not accept certain industries - and this includes everything in SBA and deposits protected by FDIC. Some senators have proposed that the SBA loan program expand to offer the cannabis industry lending options but as of today these are not available. Every business, including cannabis, needs access to money and investment to manage working capital expenses.

We can only expect for these problems to get worse for more entrepreneurs in the cannabis industry. According to Grand River Research, cannabis industry was 13.1B in 2021 - that's B for BILLION! And, the CAGR of the cannabis industry is expected to grow 25% YoY, reaching a staggering $40B by 2030!

A cash crop of this size on a national scale needs access to business financing and working capital loans to ensure the steady production, distribution, supply chain, and retail operations for not only those cannabis entrepreneurs can operate a successful business in the cannabis industry - but also that the customers who partake in cannabis have steady access to these products. In or opinion, by not offering the cannabis industry access to business loans and financing, we undermine a legitimate industry vertical - putting those in the cannabis industry at a disadvantaged status when compared to other verticals.

At present, and probably for the foreseeable future, traditional banks and financial institutions cannot lend directly to a cannabis-related business for real estate purposes. Banks also cannot accept cannabis-related deposits. Thus, cannabis businesses cannot have a direct banking relationship.

Even though cannabis products have been legalized in states across the country, the federal government still considers sale, purchase or use of cannabis products to be illegal - which makes getting a loan can be difficult because federal banking laws consider banks that offer cannabis business loans to be open to prosecution. The truth is that many banks are risk-averse and do not want to offer financing to the cannabis industry - even with its growing popularity. FDIC-insured banks are regulated by the federal government and deny all marijuana-related business loans - or other loans around the cannabis industry. Being in the canna business makes it difficult to not only get a business loan - it also difficult to get a business bank account - though some local credit unions are willing to help.

At GHC Funding, we've dedicated the past few years to developing relationships with lenders that tailor to the cannabis industry. - this includes Cannabis, Marijuana, Hemp, CBD, Cultivation and other Green businesses.

Cannabis Business Financing Options. Business loans for the cannabis industry
Cannabis Plants Growing in Field

Types of Cannabis Micro-Vertical Industries We Serve:

Cannabis Retail

Marijuana Retail

Marijuana Infused Products

Cannabis Wholesalers

Marijuana Wholesalers

Cannabis Accessories

Cannabis Producers

Marijuana Producers

Retail Dispensaries

Cannabis Processors

Marijuana Processors

Medical Marijuana

Cannabis Grower

Marijuana Grower

Live Resin Producer

Cannabis Dispensary

Marijuana Dispensaries

Shatter Retailer

Cannabis Security

Marijuana Security

Cannabis Lending

CBD Producers

Weed Producers

Hemp Business Loans

CBD Products

Weed Products

Cannabis Funding

CBD Manufacturing

Weed Manufacturing

CBD Financing

CBD Retailers

Weed Retailers

Hydroponic Equipment

CBD Beauty Products

Weed Beauty Products

Dispensary Loans

CBD Health Products

Weed Health Products

Hash Manufacturing

CBD Wholesalers

Weed Wholesalers

Weed Financing

Hemp Producers

THC Producers

Equipment Lease

Hemp Processors

THC Processors

Cannabis Loan

Hemp Products

THC Products

Marijuana Industry Loan

Hemp Manufacturing

THC Manufacturing

Hash Producers

Hemp Retailers

THC Retailers

Hemp Funding

Hemp Wholesaler

THC Wholesaler

Cannabis Industry Loans

Edible Producer

THC Topical Products

Tincture Manufacturing

Edible Manufacturing

THC Concentrate Products

Seed to Sales Funding

Edible Retailers

Dab, Wax, Shatter Product

Dispensary Funding

Edible Wholesalers

Smoking Accessories

Grow Operations Loan

Edible Products

Glass & Pipe Wholesaler

Grow Equipment

Cannabis Business Loans - Let's talk about your options

Cannabis Inventory Financing

If you need the money to purchase new merchandise for your cannabis business, then inventory financing is a good option. Business loans of this type allow cannabis and cannabis related merchants and retailers to manage disruptive supply issues that impact inventory. Cannabis inventory financing allows a cannabis business owner to borrow and gain access to loans to meet the demand requirements presented by increased market share or seasonal changes that impact the industry - Some people think cannabis gummies make great stocking stuffers! :) Cannabis business owners can increase their purchasing power which will ultimately improve the rates and terms from their suppliers. The cannabis retail business (CRB operators) can ultimately benefit tremendously from the cannabis inventory financing and loans.

Cannabis Purchase Order Financing

Similar to other industries, cannabis business owners need access to cash and inventory - especially when a large purchase order comes through the door. Cannabis business owners need access to cash so that primary, secondary and tertiary suppliers can be paid, and that there is not a hold up on fulfillment of products required for the cannabis business owner’s downstream activities. And cannabis business owners need access to inventory to make sure that the deliverables are tee’d up for the distribution in the requirements of the purchase order (PO) line items. Gaining access to up to 100% of the purchase of raw materials in the cannabis industry can put cannabis business owners at a competitive advantage in the market-place.

Cannabis Equipment Leasing & Financing

Cannabis business owners need access to equipment - in some cases - lots of equipment. This is especially true for cannabis cultivators and cannabis production specialist that provide deliverables at scale. Cannabis equipment leasing loans are a good option for the cannabis business. The types of equipments in the cannabis industry could include grow equipment, food grade processors, laboratory equipment, dispensary equipment, or other equipment on the periphery of the cannabis industry. New equipment helps cannabis business owners scale and grow their businesses - and cannabis equipment leasing loans and financing are a great option.

Cannabis and CBD Equipment Financing
Cannabis Employee Inspects CBD Production Facility

Cannabis Real Estate Financing

Cannabis real estate financing options make it possible for cannabis business owners to expand their enterprise with real estate holdings. These types of cannabis loans require the cannabis business to secure the loan with assets or collateral in the form of real property. These cannabis financing options include cannabis, marijuana, hemp and CBD commercial real estate loans to operate their cannabis business in a facilities. In every case, the cannabis business owner will user their existing collateral to borrow against in a cannabis business real estate loan; or the cannabis business owner will want to purchase a new property to operate the cannabis business.

Non-Dilutive Working Capital

Nothing is more important to a small business owner than working capital - it is the life blood of every business. Cannabis working capital loans or cannabis cash advance provide the necessary cash to operate a business that continue to grow. Cannabis working capital loans or cash advances can be both secured or unsecured. These types of loans can be used to open a new location, launch a new cannabis product, or other business purposes suited for the cannabis industry.

1 Comment

Sep 24, 2022

Great post! Thanks for sharing

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