Bespoke Financial is a commercial lender specializing in the cannabis industry. Founder and CEO George Mancheril earned a MBA from New York University Stern School of Business and worked as a trader at Goldman Sachs. After many years in traditional corporate finance, he saw opportunities in the cannabis industry and decided to join the team. Bespoke works with scores of cannabis companies of all sizes across the country. The company also has a national presence and lends to operators all over the country.
Commercial real estate loans
Before pursuing a marijuana lending venture, lenders should review the laws surrounding marijuana businesses. While cannabis businesses are legal in many states, federal banking regulations prohibit such enterprises from leasing commercial real estate. This could lead to a variety of repercussions, including foreclosure. To avoid this problem, lenders should consider including a more extensive set of terms and conditions in their mortgage lending documents. Here are some things to look for when comparing cannabis lenders.
Although the legalization of marijuana has been widely anticipated, the federal government’s lack of enforcement is likely to prevent marijuana lenders from lending money to these businesses. Banks, on the other hand, have land to secure loans and can offer a large farm in the middle of nowhere. However, large farms are difficult to recoup their investments. Instead, cannabis farmers sell their harvested product to processing facilities, which are typically large warehouse set-ups.
If you’re considering short-term mortgages for cannabis lending, you’ve likely come across a few different options. Most cannabis lenders require a personal guarantee, although there are some that don’t. They also tend to avoid using a bankruptcy remote entity, as the federal laws prohibit cannabis businesses from filing for bankruptcy. If you’re interested in borrowing money for cannabis business operations, here are a few tips for borrowers.
The most obvious method for getting approval is to get a co-borrower. This is a great idea for those in the cannabis industry, since your income may not cover the entire cost of the house. Moreover, your co-borrower is as legally responsible for the repayment of the loan as you are. If you have a co-borrower, you can make your application without much difficulty.
When it comes to cannabis lending, the application process is quite similar to any other. You will have to provide personal information and company details. You should also look for language regarding cancellation or exculpatory clauses. The following are tips for submitting a successful application for cannabis lending. Moreover, keep in mind that cannabis businesses have unique economic and legal considerations, which will make your application even more appealing. Read on for some useful advice.
Most traditional lenders aren’t willing to provide financing for cannabis businesses, so obtaining funding for various purposes can be challenging. AVANA Capital, a company that partners with Safe Harbor Financial, provides financing for cannabis businesses through bridge loans. Using these funds, cannabis companies can purchase new equipment or expand their operations. In addition to bridge loans, these companies also offer commercial real estate loans. The approval time for these financing sources is fast.
Hard money loans
If you’re starting a cannabis business, you need funding to get your start-up off the ground. While traditional banking institutions may not approve you for a cannabis loan, hard money lenders do. These loans come from private real estate lenders and have fewer requirements and regulations, making them an attractive option. They’re also perfect for real estate investment and improving business operations. Learn more about these loans and their advantages. Here’s why they’re a great option for cannabis entrepreneurs.
The most important thing to remember when securing a Cannabis hard money loan is that most lenders aren’t very knowledgeable about cannabis businesses. Because of this, you’ll need to be able to articulate where your business is going in a coherent way. While it’s nice to sound thoughtful, lenders won’t be impressed if you can’t explain what you’re doing. In addition, you’ll need to explain how each step in the cannabis process makes your company more secure and less risky.
If you’re considering getting a loan to finance your inventory in the cannabis industry, you should know that the amount of collateral you need to secure will depend on the amount of value in your cannabis inventory. This type of financing is similar to a regular business loan in that you take out a loan for a certain amount of money and repay it in monthly installments over a specified period of time. In some cases, you can even opt to pay back your loan in one lump sum after you sell your inventory. However, most cannabis lending companies will require that you pay off your loan in full before they issue you with another line of credit.
Before approving a loan, a cannabis business owner must evaluate their financial records and credit risk profile. The lender will also consider whether the business has active cannabis licenses. An inventory financing loan can be an excellent alternative to a conventional business loan. If the company has a track record of making payments and has a history of growing the cannabis industry, this type of lending can be a viable option. If you’re a growing cannabis business, inventory financing can help you restock your product and supplies as needed.