Different Loan/Finance Types
What involves selling shares of your business for in exchange for capital investment?
Equity Financing
You need to build a__________
Strong business plan.
Your business may need a ______ revenue.
minimum
This provides businesses with a set amount of credit that can be drawn upon as needed.
Lines of Credit
California law requires cannabis business to have ________.
general liability insurance.
This loan type is for businesses pursuing nontraditional financing where the property is sold to an investor and leased back to the original owner.
Leaseback Loans
Improve you________ score
Amount of ______ in ______.
time, business
Are paid back over a period of time.
Term Loans
Commercial general liability insurance must have _________.
a million per an occurrence with a 2 million aggregate
In this loan type, companies will use the facility and license as collateral for the company if payments aren't met and sell the facility or else lease it out to someone else if payments aren't met.
Real Estate Loans
Seek out ____ ____ lenders.
cannabis friendly
A certain type of credit______.
score
Allows businesses to purchase equipment with the loan and pay it back over time.
Equipment financing.
Cannabis business insurance may cover.....
theft, claims, and damages to your business property, fires, and lawsuits.
These are the same as real estate loans and can be used by: cultivation, processing, distribution, or retail facility.
Cannabis Construction Loans
Consider _______ _______ options.
alternative financing
You may need this ______for security with the investor and your real estate can act as this.
collateral
This allows you to buy an existing and hopefully profitable business. It is a low risk to a lender if the company has good traction and it profitable.
Cannabis Acquisition Loans
The best type of business insurance to get is......
BOP or business owner's policy which includes business liability insurance, commercial property insurance, and business interruption insurance.
Friends and family may help during this portion of funding. This is a loan from a bank or a financial institution but due to cannabis remaining illegal banks don't usually provide financing.
Traditional Financing
Be prepared to _______ ________.
show documentation
It's important to _____a loan and make sure you fit the ______.
research, requirements
This allows you to pay expenses before you fulfill an order.
It allows you to free up cash to pay your vendors or expenses, before receiving payment from customers.
Cannabis Purchase Order Financing
A customer claims your product made them sick and sues your dispensary. This type of insurance will pay for their medical expenses.
general liability insurance