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Getting financing for Marijuana business Industry

Medical and recreational marijuana is now legalized across many states throughout the United states. If you are also want to start your business then feel free to contact us. Upwise Capital is providing a loan and guide on "How Do Cannabis Loans Work". Visit now to read out all the important factors.

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Getting financing for Marijuana business Industry

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  1. How Do Marijuana Loans Work Getting financing for business industry Joe Lustberg www.upwisecapital.com

  2. What is a cannabis loan? Since traditional banks will not lend to the cannabis industry until it’s federally legalized or the Safe Banking Act is passed, finding a reliable capital source can be like finding a needle in a weed farm. A cannabis loan is typically from a private debt capital source that specializes in lending to the Marijuana, Hemp, CBD, Kratom and Psychedelic industries. The cost of capital in the debt capital markets for a cannabis small business loan is typically between 8% to 22% depending on certain underwriting criteria and the product type. The term of the loan, payment structure, lenders origination fee, and other factors will vary depending on the type of loan product and use of funds.

  3. What cannabis lenders look for? understand what a cannabis lender Before you start your search, it’s important to understand what a cannabis lender is looking for. Below are a few important factors an underwriter would evaluate: The borrower’s credit score Liquidity and cash on hand Capital Contribution or “Skin in the game” Your Canna Experience Level Assets or Collateral the Business has Your Team and Sponsors A cannabis lender would ideally look for loan candidates with a license, a great level of experience and a solid business plan. Also, having access to capital, liquidity to service the debt, and positive cashflow are important. If the business is operating, assets such as real estate or unencumbered equipment can be used as leverage. Cannabis small business loan lenders typically will specialize in a specific sector of the industry such as distribution, cultivation, processing, or retail.

  4. What it can it be used for? A cannabis small business loan can be used for a variety of capex and opex uses to help grow your business from the ground up. If you’re a start-up cannabis business that was issued a license in a new state, the only options available are equipment financing and construction financing to build out your facility or operation. A more established MRB operator can use the loan funds for any business use such as hiring new employees, inventory purchases, equipment leasing, operating expenses, building and working capital. Your use of funds is the most important aspect when a credit team is evaluating a potential borrower.

  5. When to get a cannabis loan? A cannabis small business loan can be secured at any time during the lifetime of your business. Additionally, if you’re a start-up cannabis business with no experience, you’re able to secure a loan against property owned or to lease equipment.

  6. The Upwise Difference What differentiates our firm from everyone else in the marketplace is we understand cannabis value and lend on real estate based on the as-completed cannabis value (typically at 65% -70% LTV). Our many years of cannabis financing experience and knowledge of the industry gives us an edge above our competitors. Every loan we provide is unique and custom-tailored to the specific needs of the individual business. Working capital can be utilized for various purposes such as, launching a new product, securing a new location or improving your facility. If you are an established business, you can leverage your different asset classes in order to secure debt capital. Asset classes consist of real estate, equipment, the license, inventory, purchase orders or off take agreements, intellectual property or patents, and business revenue.

  7. CONTACT DETAILS WEBSITE www.upwisecapital.com EMAIL ADDRESS funding@upwisecapital.com PHONE NUMBER (646)-837-5522

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