Finance Factory business loans
Finder Rating: 4.1 / 5 ★★★★★
Loan amount | $5,000 – $500,000 |
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APR | 5.99% to 8.75% |
Min. Credit Score | 600 |
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If you’re involved in the cannabis industry in any shape or form, it’s likely you already know how difficult it can be to find a lender willing to work with you. Most banks don’t offer cannabis financing because it’s just too risky.
It’s still possible to find funding for a cannabis business, despite federal roadblocks, though you’ll generally need good credit. Count on needing a credit score above 670, though some lenders on our list accept scores lower than that.
We’ve narrowed down five of the best lenders that work with cannabis businesses — or budlenders if you will.
Finance Factory business loans
Finder Rating: 4.1 / 5 ★★★★★
Loan amount | $5,000 – $500,000 |
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APR | 5.99% to 8.75% |
Min. Credit Score | 600 |
First Down Funding business loans
Finder Rating: 4.6 / 5 ★★★★★
Loan amount | $5,000 – $300,000 |
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APR | Fee Based |
Min. Credit Score | 400 |
Diamond business loans
Finder Rating: 3.85 / 5 ★★★★★
Loan amount | $25,000 – $150,000 |
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APR | 5.9% to 19.99% |
Min. Credit Score | 680 |
United Capital Source business term loans
Finder Rating: 4.8 / 5 ★★★★★
Loan amount | $10,000 – $5,000,000 |
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APR | Starting from 5% |
Min. Credit Score | 550 |
Green Leaf Money cannabis business loans
Finder Rating: 4.2 / 5 ★★★★★
Loan amount | $1,000 – $250,000 |
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APR | 6.98% to 30% |
Min. Credit Score | 700 |
We picked these lenders based on cost, availability and the ability to fund most types of cannabis businesses. We also looked for lenders that made a point they could accommodate high-risk businesses and startups, either with special programs or loans specifically for cannabis business. We also considered customer reviews, reputation and Better Business Bureau (BBB) accreditation and ratings.
Since no one loan is best for every business, we made sure to include lenders that offered different types of funding to fit a variety of business needs.
We added Finance Factory to our list of best cannabis loans, due to its high customer ratings and willingness to work with high-risk businesses and startups.
Business financing is different when it comes to the cannabis industry. Since many cannabis businesses don’t have financial business records, your eligibility often heavily depends on your personal financial history.
Here’s what you may need to qualify:
There are several types of loans that you can use to fund your cannabis business. Which one is right for you depends on what you need financing for.
Cannabis is still federally illegal, so banks that offer loans to the cannabis industry could be subject to prosecution. They could also be liable if they lend to a business that breaks state law by selling to a minor or transports cannabis across state lines. These risks make it impossible for you to get a business loan from an FDIC-insured bank and hard to find funding from non-insured banks or lenders.
Additionally, cannabis businesses currently are ineligible for loans backed by the Small Business Administration, or SBA loans. That’s because the SBA doesn’t offer loans to businesses that engage in illegal activity. Unless the SBA makes an exception, these low-cost loans are off the table for the cannabis industry until cannabis is legalized at the federal level.
CBD businesses may fall into a legal gray area — but unlike cannabis, CBD use is legal in all 50 states. So getting funding for one is easier than for a cannabis business, especially in states where recreational cannabis has been legalized.
A cannabis lender could help, as there is overlap between the two types of businesses.
If you plan on starting a cannabis business and don’t qualify with an online lender, there are other creative ways to seek out funding:
Some states offer grants to help get a cannabis business started. Depending on your home state, you may qualify for one.
For example, California has the Cannabis Equity Grants Program. Its purpose is to aid local businesses in acquiring licensees and as a way to regulate cannabis in a way that “reduces barriers to entry into the legal, regulated market,” stated on CA.gov. This program offers assistance with regulatory compliance and securing the capital necessary to start the business.
If you have good credit, cannabis business loans can be an affordable financing option if you’d rather retain full ownership of your business. But since it’s such a high risk for lenders, you’ll likely pay higher rates and fees than other industries.
For funding that’s more affordable with fewer requirements, check out our guide to investor crowdfunding for cannabis businesses.
Compare alternatives offering instant decisions and funding in one business day after closing.
Whether it’s heavy machinery, specialized medical monitors or new IT devices, equipment finance can provide the funding you need to maintain operations.
BHG Money is a nonbank lender that offers investment, debt consolidation, startup and healthcare-related loans to licensed professionals. Borrow up to $250K with minimal requirements.
Get multiple offers from this highly rated service, but watch out for strict repayment terms.
Find a $600K business loan and calculate the monthly payment before you apply.
Find the right lender for any purpose and calculate potential monthly payments.
Compare lenders your company can qualify for and calculate the cost before you apply.
Find a $40,000 business loan for your business and calculate the cost before you apply.
Find $50,000 loans for all purposes, even if you’re a startup or have bad credit.
Compare lenders and today and learn how to pick a provider that offers the kind of financing your business needs.
What is the best loan for funding a start up? I am working to opening a dispensary in Missouri. I need funding for the building, licensing, and inventory.
Hi T,
Thanks for getting in touch with finder. I hope all is well with you. :)
The best loan for you would be the one that fits your needs, preference, and budget. You may want to use our comparison table above. Compare your options based on the minimum and maximum loan amount and requirements. Once you found the right one for you, click on the “Go to site” green button to learn more.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I’m from the UK and know how to grow, can I get a loan to get me from the UK to the USA and get a green card, and accommodation for growing, then turn a profit and pay you back?
I am properly good at growing, I just don’t have the funds to get there, any info would be a great help.
Cheers
John
Hi John,
Thanks for getting in touch with finder.
Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice. You may need to directly get in touch with the companies we feature on this page to get the funding that you need. All you need to do is click on the “Go to site” green button of the company of your choice.
It is important to note that there are eligibility requirements that you need to meet before a loan is provided. Private equity firms, venture capitalists, and other investors will likely need to be sure they have a good chance of getting a return on their money. If you are in the UK and you are looking for a loan in the US, you might have limited options or there would be a lot of challenges that you have to overcome before you get your funding.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi,
Thank you for contacting finder.
I understand that you are a looking for loan options in Alaska.
I have a link that will be helpful in giving you options for financial assistance.
https://www.finder.com/payday-loans/alaska
Thanks.
John
Any recommendations on lenders in Southern California? Looking for a private money loan to purchase a commercial property for dispensary retail. Property identified. Thanks!
Hi John,
Thanks for reaching out. While we are unable to recommend a particular lender, you may refer to our comparison page on non-bank business loan options that might be able to finance your cannabis dispensary business. I sent in your email some articles and references on marijuana business investing that you might find helpful.
Kind regards,
Liezl
Are there any options in NH to grow cannibis or hemp based products for industrial use or medical use.
I’m a farmer that handicapped and would like to explore options in the state of NH or FL.
Is there a prevision that allows grow and mfg of cannibis based products. Turnkey operations in NH?
Thank you
Hi Tony,
Thank you for your inquiry.
As per checking you are already in the correct page. Please review the content provided on our guide on this page there are types of financing are available for cannabis businesses. Please note that the options available is applicable only in United States.
I hope this information has helped.
Cheers,
Harold