No-fee working capital loans and more for cannabis businesses and startups.
Looking for money to start a cannabis business? Need funding to cover overhead costs? Finding a lender willing to work with you can be tricky. You might want to check out Dynamic Alternative Finance. This Colorado-based connection service specializes in finding financing for businesses in the cannabis industry. Both startups and established businesses are welcome to apply, though they’ll be eligible for different loan amounts and have to meet different requirements.
|Product Name||Dynamic Alternative Finance Working Capital Loan|
|Minimum Loan Term||3 years|
|Maximum Loan Term||7 years|
|Requirements||For working capital loan must have 2+ years in business and a business bank account. Startups must have a credit score of 700+ and a Tax ID number.|
- 2+ years in business
- business bank account
- Startups must have a credit score of 700+ and a Tax ID number
First, do I qualify?
To qualify for a Dynamic Alternative Finance business loan, your business must:
- Be at least two years old
- Have a business bank account
Want to start a business? You just need to have a:
- Credit score of 700
- Tax identification number
What’s Dynamic Alternative Finance?
Dynamic Alternative Finance is a connection service that helps the cannabis industry find financing sources from investors and lenders interested in funding business loans. Through its partner lenders, your business can apply for a working capital loan that comes in the form of an unsecured fixed-term loan or line of credit.
These can range from $250,000 to $10,000,000 with loan terms of three, five or seven years. There’s generally no fee to apply or pay off your loan early, so interest is the main cost you need to worry about — and that varies from lender to lender. Startup loans work similarly, but they stop at $250,000 and require a personal guarantee.
Dynamic Alternative Finance is a subsidiary of equipment leasing company Dynamic Funding Inc., so you can apply for an equipment lease through Dynamic Alternative finance as well. It also offers real estate loans from $250,000 to $2 million with fixed rates starting at 8.9% and loan terms ranging from 10 to 25 years.
What makes Dynamic Alternative Finance business loans unique?
Dynamic Alternative Finance is one of a handful of connection services out there that specializes specifically in cannabis business financing. This means that it doesn’t fund the loans itself, but finds you offers from cannabis-friendly lenders and investors. Its partners work with all types of cannabis business types, so even grow houses are welcome. And its startup financing option allows you to apply for financing even if your business can’t get a bank account or hasn’t opened its doors yet.
What are the benefits of a Dynamic Alternative Finance business loan?
- Startups welcome. Dynamic Alternative Finance offers funding to both startups and established businesses.
- No bank account needed. Startup loans don’t require your business to have a bank account.
- Generally, no fees. Generally, its partners don’t ask for any application, origination or prepayment fees.
What to watch out for
- Good credit required for startup funding. You’ll need to have a credit score of at least 700 to be eligible for startup funding from one of Dynamic Alternative Finance’s partners.
- Hard to know rates ahead of time. Dynamic Alternative Finance doesn’t advertise its rates for working capital and startup loans on its website.
Compare more loans for cannabis businesses
Is Dynamic Alternative Finance legit?
It is. In addition to being a subsidiary of Dynamic Funding Inc., it’s also a member of the Marijuana Business Association (MJBA) and the National Cannabis Industry Association (NCIA). Both are trade organizations that work to establish standards for business practices in the cannabis industry. The NCIA also does advocacy work for the industry on a federal level, including a push toward making it easier for cannabis businesses to qualify for a bank account.
Dynamic Alternative Finance is also accredited by the Better Business Bureau (BBB) and receives an A+ rating. As of this writing, it does not have any customer reviews or complaints filed.
How do I apply?
First, confirm you qualify. Your business must meet the following requirements to qualify for a working capital loan from one of Dynamic Alternative Finance’s lenders:
- Be around for at least two years. This means this option isn’t available to newer businesses.
- Have a business bank account. Unbanked cannabis businesses can only qualify for Dynamic Alternative Financing’s startup loan.
Startup loans, on the other hand, only require a 700 credit score or higher and a tax identification number. You’ll also have to give a personal guarantee, meaning that you’re on the hook for paying off the loan if your business can’t.
To get funds through one of Dynamic Alternative Finance’s partners, you need to fill out a quick application to request a consultation. You can do this either online or over the phone. To get started on your business financing application online, follow these steps:
- Go to the Dynamic Alternative Finance website.
- Click Contact Us Today.
- Fill in the required fields with your personal contact information and the basics on your business before hitting Submit.
A representative will get in touch with you to ask more questions about your business. From there, they’ll help you find the right financing option for your business, give you an idea of what it might be able to qualify for and get you started on the application. How long it takes to get your funds varies depending on your business type and lender.
Step-by-step application with screenshots
What documents do I need to apply?
Typically, Dynamic Alternative Finance requires the following documents in PDF form for its working capital loans:
- Six months of bank statements. These should be your business’s most recent six months, which gives your lender a picture of its current cash flow.
- Three years of tax returns. Dynamic Alternative Finance requires both personal and business tax returns.
- Two years of profits and loss statements. It also might ask to see balance sheets.
- A copy of your personal credit report. Dynamic Alternative Finance recommends that you get one that merges reports from all three credit bureaus, which you can find online.
I got a cannabis business loan from Dynamic Alternative Finance. Now what?
How you repay your loan varies, depending on what type of financing you have. If you’ve taken out a term loan, your business will start making regular repayments on your loan amount and interest until it’s paid off. With a line of credit, your business’s repayments typically don’t start until after it makes a withdrawal.
If possible, consider signing up for automatic payments. That way you won’t have to take the time to pay manually each time it’s due. Regardless of which repayment method your business goes with, keep track of your loan balance and any bank accounts involved. If you have any questions or concerns, reach out to your lender’s customer service team.
Dynamic Alternative Finance could be a good resource for cannabis businesses struggling to get funds. Its partners are friendly to startups and it can find your business funding even if it’s had trouble holding a bank account, due to the nature of the industry. But its credit score requirement is a little higher than other options out there.
Curious about your cannabis business’s other financing options? You might want to check out our guide to cannabis business loans to learn where else to look and compare more lenders.