The use of cannabis has been legalized across most of the United States at the state level but it is still classified as a schedule I drug by the federal government. A schedule I drug is one that offers a high scope for abuse and hence is dangerous for society at large. That is one side of the story but on the other side there is the reality of the vast majority of states having legalized the use of cannabis or marijuana in their jurisdictions. As many as 41 of the 52 states have legalized the use of cannabis at different levels e.g. 21 states allow its use for both medicinal and recreational use while in 20 it can only be used for medicinal purposes. Cannabidiol or CBD-based dietary supplements are gaining popularity by the day and scores of small businesses are in the fray for a share of the market. Many of these businesses are growing fast with alternative funding.
Need bank rolling to operate in a competitive market?
It is very difficult for a business to run without a reliable source of business funding as there are several operational expenses that must be met at different points of time. It is quite normal for any business, big or small to fall short of working capital which includes payroll expenses. This is one expense that you cannot delay as it can jeopardize your operations.
In a commodity sales business operation you need to maintain a certain level of inventory at all times if you want to meet regular demand smoothly. There are times when you will have to meet higher demand which is also an opportunity to increase sales. Opportunities come when you are least prepared and they also have a cost of utilization. Quick funding by alternative lenders makes it easy for you.
Traditional lenders won’t lend to small businesses
It is now an unwritten law wherein traditional lenders refuse to lend to small businesses, more so, if they happen to deal in cannabis-based products. In the assessment of such traditional lenders the risk is much higher in providing business capital loans to small businesses.
This trend of not lending to small businesses began after the Great Recession of 2008 which has its roots in mismanagement of accounts receivables by the big time lenders. Yes, there were repayment defaults but there was also mismanagement by the lenders. Consequently, all US business funding to small businesses hit a roadblock.
Get hassle-free funding from alternative lenders
If you are finding it difficult to get cannabis funding from traditional lenders don’t get stressed because there are much better funding options available from alternative sources. They have minimal requirements for documents to assess your eligibility, which is quite easy for any small business with a rolling cash flow.
If you provide all the documents that they require for assessment, your small business funding would be approved and the money will be in your bank account within 24-48 hours. You won’t be required to provide any collateral to secure the debt and neither will your credit history be checked. All that the lenders are interested in is whether your cash flow is stable enough for you to service the debt and for that they ask for your bank account statement.