Diamond Business Loans review | Cannabis business funding

Diamond Business Loans review

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Grow your cannabis business with a line of credit or business loan.

You need funding for your new cannabis business. But because of federal laws that prohibit funding this budding industry, a standard business loan through your typical bank or lender isn’t an option.

But Diamond Business Loans is among a growing list of business funders offering straightforward business term loans and lines of credit. It’s willing to work with many types of cannabis business, including growers and startups.

Here’s what to know about this lender that’s funded more than $50 million in business loans.

Product NameDiamond Business Loans
Min Loan Amount$25,000
Max. Loan Amount$150,000
APR5.9%–19.99%
Interest Rate TypeFixed
Minimum Loan Term1 year
Maximum Loan Term5 years
RequirementsPersonal credit score of 680, no late payments or bankruptcies.
  • Personal credit score of 680+
  • No late payments
  • No past bankruptcies

Do I qualify?

For your business to qualify for cannabis business funding through Diamond Business Loans, you must show proof of:

  • A personal credit score of 680 or higher.
  • No late payments.
  • No past bankruptcies.

What is Diamond Business Loans cannabis business funding?

Diamond Business Loans is a direct lender that offers unsecured lines of credit and term loans to just companies in a variety of industries — including cannabis businesses. You can apply for up to $150,000 toward your existing business, up to $150,000 through Diamond’s unsecured capital program and up to $150,000 for commercial real estate financing.

Rates

If you’re looking to borrow money for a one-time expense, you might want to take out a term loan. Term loans come with APRs that typically range from 5.9% to 19.99%. Businesses generally have between one to five years to pay off a term loan plus interest.

If your business has ongoing expenses or projects, consider a line of credit. Lines of credit come with APRs that go up to 9.99%.

Diamond Business Loan determines your rate based on factors like your credit score, income and your loan term.

Fees

Each loan requires a high 10% fee after your funds are disbursed — a fee that’s taken out of your loan or line of credit, potentially decreasing the funding you need. For example, a $100,000 business loan would require $10,000 in fees, leaving you with $90,000 in funding after the fees are deducted from your loan amount.

What makes Diamond Business Loans unique?

Virtually any type of business in the US cannabis industry can apply for funding through Diamond Business Loans. Borrowers include startup growers, dispensaries, edibles sellers and wholesalers — the types of businesses that can have trouble getting a loan thanks to the lack of a financial track record or the shaky legal status in the US.

You can get an idea of the rates you might qualify for by sending over a copy of your personal credit report — a service many other cannabis business lenders aren’t always able to provide.

What are the benefits of using Diamond to fund your cannabis business?

  • See what you might qualify for. You can get a quote of your potential rates simply by submitting a copy of your personal credit report.
  • Grower and startup friendly. Diamond works with businesses that other cannabis lenders — and business lenders in general — tend to shy away from.
  • Hands-on approach. A representative guides you through the application process, taking the guesswork out of financing.

What to watch out for

  • High fees. A 10% funding fee is on the high end for a business loan, however uncertain the industry.
  • No online application. You can’t just complete a quick online form and be done with it. This loan is more involved.
  • Not a fast loan. With Diamond, you’ll have to wait a few days even for a simple preapproval.

Compare Diamond to similar providers offering alternative business loans

Rates last updated July 16th, 2018
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
Diamond Business Loans
Grow your cannabis business with a line of credit or fixed-term business loan.
$25,000
$150,000
Personal credit score of 680, no late payments or bankruptcies.
GoKapital
Find the funding your business needs without the worry of meeting a minimum credit score.
$10,000
$5,000,000
Minimum of $10,000 average monthly revenue. At least four months of business bank account statements.
Green Leaf Money
Connects cannabis businesses with lenders willing to work with them across the country.
$25,000
$10,000,000
Documented income and records of your business spending and accounts.
Fundanna Cannabis Business Equity Crowdfunding
Raise funds for your cannabis business while using a streamlined platform to communicate with investors and develop a loyal brand following.
$10,000
$1,070,000
Must own a startup in the cannabis space. You're not eligible if your company is outside of the US or already reports to the SEC.

Compare up to 4 providers

What does the Internet say about Diamond Business Loans?

The little chatter out there is overwhelmingly positive. In fact, we couldn’t find any negative reviews.

Diamond Business Loans earns an A+ from the Better Business Bureau (BBB), where it’s been accredited since 2015. It gets a five-star composite BBB score based on the BBB rating and two positive customer reviews.

It doesn’t do quite as well on Trustpilot, but it scores a respectable 7.7 out of 10. Like the BBB page, however, these ratings are based on two customer reviews at the time of writing, both of which are positive. The four BBB and Trustpilot users all agree on one thing: Diamond Business Loans’ customer service is top-notch.

Customers in online forums agree on Diamond Business Loans’ efficiency, competitive rates and speed in turning around funds. Several commenters mention trouble getting financing for their business elsewhere, preferring to work with this lender.

Am I eligible?

You must meet eligibility requirements for your business to qualify for cannabis business funding through Diamond:

  • Personal credit score of 680 or higher. Like with other loans, the higher your credit score is, the more competitive the rate you’ll qualify for.
  • No delinquent payments. Your credit report must be free of late payments to qualify for this loan.
  • No past bankruptcies. You won’t be able to qualify with bankruptcies on your credit report, no matter how long ago.

How do I apply?

To start your application, click Go to site. Complete Diamond’s preapproval form with basic information about you and your business.

Diamond Business Loans Application

You can choose between letting Diamond Business Loans check your credit score for a fee or sending in a PDF of your credit report, which you can typically get for free through sites like AnnualCreditReport.com.

You’ll typically wait one to two business days for Diamond Business Loans to let you know if you’re preapproved. If you get the green light, a representative guides you through the next steps.

I got financing from Diamond Business Loans. Now what?

It’s time to start paying off your loan. Keep track of our loan balance, and stay in touch with Diamond Business Loans if you notice anything off or have questions. Also reach out if you think you’ll have trouble making repayments to go over your options.

More loan offers by DBL

Got a business that’s not part of the cannabis industry? Diamond Business Loans offers nine types of financing, from your standard small business loan to cash advances, startup loans and equipment financing. It can finance businesses in just about any legitimate industry, including adult entertainment.

To qualify for these loans, you’ll typically need a personal credit score of 620 or higher and proof that you’ve been in business for at least one year.

Have a new business? You can still qualify as long as your credit score is at least 680 and your credit history is free of bankruptcies and delinquencies.

A breakdown of DBL lending products

  • Small business loans. Fixed-term financing for any standard business expense, including day-to-day expenses, inventory or hiring.
  • Startup business financing. Funding for your new business with a different set of credit requirements.
  • Real estate financing. Buy new commercial property to grow your business.
  • SBA 7(a) Loans. Loans backed by the Small Business Administration (SBA) tend to come with competitive interest rates and can be used for legitimate business purposes that include real estate, investments in a new business, working capital or even getting a startup off the ground.
  • Business acquisition financing. To cover the cost of buying a new company, helps you set a price and provide financing if your funds get temporarily tied up in the transaction.
  • Easy pay cash advances. Qualify for this merchant cash advance to borrow against future credit sales with at least $8,000 in monthly credit card sales and acceptance of Visa, Mastercard or Amex.
  • Equipment leasing and financing. Find funds to cover the cost of a lease or new equipment for your business.
  • Accounts receivable financing. Access cash for your business that’s tied up in invoices.
  • Debt restructuring. Consolidate and refinance your business’s current debts for a better deal on rates and simpler repayments.

Bottom line

At a time when the federal government still considers marijuana a Schedule I drug, funding for a cannabis business can be tricky. Diamond Business Loans is part of a growing group of lenders opening up financing options for all types of businesses operating legally in the US. If you’re a growers or startups, it’s one of a handful that’s willing to work with businesses lacking a comprehensive history.

To learn more about how financing for this industry works, read our guide to cannabis business financing.

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