Cannabis grow facility lenders aren’t a dime a dozen; cannabusiness funding can be challenging to find. But even once you locate a lender, getting a loan to scale grow operations, expand with a dispensary, or open a manufacturing facility is next to impossible without proper documentation.
First and foremost, before comparing cannabis grow facility lender options, it’s crucial to have information about your operation’s finances. This is the first thing we do for our clients, regardless of whether they’re looking for funding now or might in the future.
Between navigating legal complications and strict regulations, we facilitate funding options for cannabis grow facility operators. Whether you need capital for real estate, equipment, or something else, it’s essential to have data available to ensure cannabis cultivation lenders feel confident funding your operation’s expansion.
This article covers some of the most frequently asked questions and solutions for cannabis grow facility capital requirements.
Are you looking for a solution for your grow facility’s financial needs? Contact us today to learn more about how we can help.
Cannabis Grow Facility Lenders FAQ
Here’s a list of answers to the most frequently asked questions we’re receiving from cannabis grow facility operators:
What are common types of cannabis loans?
Cannabis endeavors can call for capital infusions to continue operations. Some of the most common loans for cannabis grow facilities include business loans, equipment loans and leasing, manufacturing facility loans, grow operation loans, medical dispensary loans, and recreational dispensary loans.
Banks aren’t always willing to lend money to businesses operating in cannabis. Thus, cannabis grow facility lenders will sometimes issue real estate and equipment loans. But they also provide money for other aspects of the operations, including marketing, payroll, business expansion, and inventory. This funding is generally offered either by lines of credit, cash advances, or short-term loans.
Equipment loans and leasing offer cultivators a way to obtain and upgrade equipment. From lighting to CO2 extraction, irrigation, HVAC, and other aspects of a grow, cannabis cultivation lenders make equipment more accessible.
In some cases, a manufacturing facility loan is the only thing standing in the way of a grow facility expanding its operations. While commercial real estate lenders could fund facilities to manufacture cannabis products, private funding is also an option.
On the other hand, some growers want to scale a cultivation facility. Grow operation loans are available from private investors, bridge loans, and short-term mortgages.
Medical and recreational dispensary loans can be challenging to find. But for growers interested in expanding their operations into retail, private debt or equity financing for recreational and medical marijuana dispensaries are becoming popular options.
However, it’s important to note that lenders will want to see a track record of your operation’s revenue for all of the mentioned options. This is where we can help.
Looking for funding? Get your documentation in order with Northstar first. Contact us today to learn more about how we can help you get the funding your grow operation needs to thrive.
Can you get a loan to open a dispensary?
Sometimes, operating a cannabis grow facility becomes a dispensary venture. When this happens, cultivators find themselves wondering, “Can you get a loan to open a dispensary?”
At this point, U.S. banks will not loan money for dispensary funding. However, other options to obtain capital exist. Learn more about cannabis business loan options available here.
Which lenders offer cannabis loans?
Cannabusiness funding isn’t always as accessible as other business loans. But, in some cases, borrowers may be able to obtain a Construction cannabis loan or a Prime Commercial cannabis loan. However, most of the time, a hard money cannabis loan is the best option available.
Looking for a cannabis grow facility lender? Our connections throughout the industry allow us to offer exclusive access to cannabis loan options. Contact us today to prepare and connect with a cannabis cultivation facility lender.
How much does it cost to open a dispensary in NY?
NY legalized cannabis recently, which was a huge win for advocates. Now that it’s legal, your grow operation has fewer bottlenecks and you have the opportunity to sell cannabis in a retail setting.
But how much does it cost to open a dispensary in NY?
Opening a dispensary in NY involves application fees. Upon applying for a cannabis dispensary license in New York, you can expect to pay $210,000. If your application is denied, they’ll reimburse you for $200,000.
License fees for a producer or dispensary license in New York costs $200,000. Cannabusiness operators must comply with NY’s regulations by renewing their license every two years to keep it active.
How much do I need to open a dispensary in California?
Opening a dispensary in California can be a profitable venture for growers. Direct access to this massive consumer base can increase your yield’s profits tremendously.
So, how much does it cost to open a cannabis dispensary in Cali?
On average, opening a dispensary in California has an up-front investment that ranges from $80,000 to $250,000. However, it’s crucial to note that the ongoing operating expenses range from $30,000 to $70,000 monthly.
How much does it cost to open a recreational dispensary in Colorado?
Opening a recreational dispensary has the potential to give your cannabis grow facility an outlet to reach consumers directly. But how much does it cost to open a recreational dispensary in Colorado?
For the initial license fees, you can expect to pay between $5,200 and $13,200. Renewals are slightly more expensive. If you’re opening a retail operation, you can expect to pay somewhat less with application fees costing $5,000 and an initial license fee of $3,000.
How do I open a dispensary in CT?
Considering opening a dispensary in CT? Now is the time to do it. Opening a dispensary has the potential to give you access to consumers ready to purchase your high-quality flower.
Here’s what you can expect to pay when you open a dispensary in Connecticut:
- $1,000 for your Dispensary Facility License Initial Application Fee
- $100 for your Dispensary License (Individual) Initial Application Fee
- $100 for your Dispensary Facility Backer Initial Application Fee
- $50 for your Dispensary Facility Employee Initial Application Fee
Interested in cannabusiness funding for a cultivation facility, dispensary, or manufacturing facility? We’ll facilitate the entire process! Contact us today for expert financial assistance.