Are you thinking about starting a marijuana business?
Whether you are associated with medical companies or not, you probably thought about joining this booming industry. Now that marijuana is legal in 28 states, starting a marijuana business can be very profitable. That is why you also have to ensure that you also have the best weed preventer for such crops.
However, there are a lot of hurdles and challenges along the way. In fact, you will face a lot of problems in starting a marijuana business. And just like any other business, expect to have problems with getting financing.
The marijuana business needs a lot of expensive equipment such as security systems, extractors, infusion equipment, and the list doesn’t stop there. Buying the necessary equipment will cost a lot of money. That’s where cannabis equipment financing comes to play.
How To Get Cannabis Equipment Financing
Financing your marijuana business is not like any other businesses. Financing will be challenging because the equipment is expensive…
And by now, you’re probably aware that most lending companies are not willing to finance marijuana-related businesses. That’s why I want to talk about solutions that can help you with your financing challenges.
But first, let’s talk about what equipment you’ll need…
What Is Needed For A Marijuana Business
You’ll need a variety of different equipment for your marijuana business. Besides the physical location, you’ll need equipment such as:
- HVAC (heating and air conditioning)
- CO2 Extraction
- Modular grow rooms
And much more.
What Are The Requirements Before Starting A Marijuana Business
The first step in starting a marijuana business to find a good location for your business. Marijuana is not one hundred percent legal in the United States… it’s presently only legal in 28 states.
After you have a location, next you have to prepare the following documents:
- Personal Financial Statement
- Company financials
- Personal and business income tax returns
- Balance sheet and income statement
- Personal and business bank statements
- A photo of your driver’s license
- Commercial Leases
- Business licenses
- Articles of incorporation
- A resume that shows relevant management or business experience
- Financial projections if you have a limited operating history
Additional documents may be required during the process, depending on the lender.
Lending to a small business is already risky. Just imagine the risk of financing business in an industry where the city may decide to become against the industry. The outcome could leave the investor with almost nothing. Therefore, expect the financing for this business to be a little bit tricky.