4 Tips for Getting Cannabis Funding From Investors

Cannabis operators typically need reliable financing to cover their many expenses, including property lease, equipment, inventory, and other vital resources. Looking for suitable funding options as an aspiring entrepreneur can be daunting. You’ll need to live up to the investors’ expectations to earn their trust and secure your funding.

Investors are proficient in the field of finance and know exactly what constitutes a promising company. Read on to learn how to successfully answer their questions and push your business forward. To get expert assistance in obtaining suitable funding, you can also partner up with a sophisticated cannabis banking service like Confia.

How to answer tricky questions from investors and get funding?4 Tips for Getting Cannabis Funding From Investors

Attracting investors can be a tall order. Your managerial team needs to impress them with their skills and presentation. It’s also important to assess and show a thorough understanding of  your business risks. In addition, you’ll have to show that your financial operations are transparent and meticulously reported. Finally, your ownership paperwork has to be in order, too. Here’s how to complete these essential steps.

1. Prove that your management has what it takes

Investors are very discerning when it comes to your management’s strengths and weaknesses. They want to see confident, cooperative, and knowledgeable professionals who know exactly what they’re doing. Poor management doesn’t only drive investors away, it also spells trouble for your business in the long run. So, make sure that the team is well-prepared and has the subject matter down pat.

2. Be extra careful with managing your finances

Investors know the ins and outs of business finance and they will most likely expect you to keep up. Make sure that the financial side of your business is in order because investors want to see an immaculate track record. You’ll need a reliable bookkeeping system and all of your financial statements carefully filed and organized. You’ll need to submit your performance metrics to show you have potential to achieve great things. 

3. Get a good understanding of the business risks involved

It’s essential for you to painstakingly examine and acknowledge the potential risks your business may face. Although you’ll work tirelessly to succeed, you can never be absolutely sure that it’ll happen. And if things go south, your investor can sue you for failing to disclose the risks. By presenting them openly, you’ll be protecting yourself and your business from future difficulties.

4. Make sure your ownership structure is fully transparentWhere can I find a comprehensive cannabis banking service?

It’s important to have the details of your ownership structure in black and white. First, ensure that your ownership agreement is in mint condition. It should be rooted in the reality of your business and based on industry-specific concepts. Also, all partners have to be on the same page regarding key points that will be presented to the investors. If they notice any worrying discrepancies, they will be unlikely to offer funding.

Where can I find a comprehensive cannabis banking service?

Confia offers a robust suite of financial services to cannabis operators. Our innovative toolkit enables budding businesses to conduct financial operations in a streamlined and transparent way. Keep track of your transfers, offer your clients the option of effortless digital payments, use automated payroll processing, and ensure stringent legal compliance with current regulations

On top of this, Confia also provides access to reliable lending solutions, which can make it easier to obtain your cannabis license and get your business off the ground. Optimize your business operations, grow your brand, and earn top dollar by selecting your custom membership option. Get in touch with us to fast-forward into the future of the cannabis industry.

Top Cannabis Compliance Complaints & How to Handle Them

Although the cannabis industry is growing rapidly, there’s still a high degree of distrust directed toward it. Cannabis operators face intense scrutiny and many legal challenges, which they’re often not ready to handle, especially if they’re a tiny startup hoping to take off. 

Not having resources to solve these issues puts a company in danger. They may have to pay large fines, be stripped of their license, and ultimately lose profit as well as their good standing in the industry. Luckily, there are now companies like Confia, which offer tailored cannabis banking solutions and operate on stringent compliance principles.

Keep reading to learn more about the most frequent hurdles that stand in the way of cannabis compliance. 

How can I deal with common cannabis compliance complaints?

How can I deal with common cannabis compliance complaints

As a cannabis operator, maintaining the legal status of your business by staying compliant with local, state, and federal regulations is hugely important. However, it comes with its own fair share of challenges. Since it’s such a crucial part of protecting your brand, it’s worth looking into the most glaring compliance impediments. Once you know what to expect, you’ll be better equipped to effectively overcome these obstacles.

1. Time-consuming procedures

Keeping up with industry-relevant regulations and applying them consistently adds onto your workload and takes up a large portion of your time. This is often a waste of resources because it prevents you and your staff from handling other duties that actually yield profit. Instead of trying to stay on top of legal requirements, you could be using your time and energy to focus on business operations, boost sales, and earn more. 

2. Multiple legal frameworks to consider

To operate successfully, you first need to meet federal legal demands, such as OSHA workplace safety standards and FCC standards. As if adhering to federal laws isn’t complicated enough, you also have to follow state and local cannabis-related regulations. Licensing requirements, quality standards, and other rules vary between locations, and it’s your responsibility to keep up-to-date with all of them. 

3. Confusing and ever-changing regulations

Following the many rules that govern the cannabis industry is a multifaceted and complex task. To make matters worse, these legal frameworks undergo frequent changes. Staying in the know and adapting to shifting demands requires a lot of specialized knowledge and resourcefulness. This is why many cannabis operators outsource their financial dealings to expertly run financial networks. 

4. Unreliable reporting software

Even after you’ve managed the complexity of cannabis regulation, there’s another problem to solve. Reporting tools used by most cannabis operators are slow, inefficient, and untrustworthy. Although businesses have long been left to fend for themselves, they can now access seamless financial services that use cutting-edge platforms and offer expedient payment processing, reporting, and compliance.

Where can I find fully-compliant cannabis banking solutions?

Where can I find fully-compliant cannabis banking solutionsCannabis operators typically face the obstacles of inefficient banking and compliance irregularities, which can seriously jeopardize their business growth. Confia can help you continue operating legitimately thanks to our streamlined BSA program. We use cutting-edge software to monitor your transactions and automate compliance procedures. With our meticulous screening and strict SOC-2 processing, your business can thrive without the risk of legal sanctions.

By partnering with us, you obtain access to other benefits, too. You’ll be able to use our FDIC-eligible, API-powered platform that relies on sophisticated technology to facilitate your financial transactions and ensure compliance. You can also unlock practical funding opportunities. Contact us to apply for a Confia membership package you need, get rapid onboarding, and log onto our intuitive platform to monitor your finances. We’ll remove stumbling blocks out of the way and pave your way to success!

4 Questions to Ask Yourself When Applying for a Cannabis License

The cannabis licensing process is extensive and time-consuming, but it’s a necessary step to running a successful, legal business. Even if you’re a seasoned entrepreneur, your previous experience may not have prepared you for this complex procedure. Since it requires a lot of effort and careful considerations, it’s best to think it through beforehand and arm yourself with patience.

Read on for expert tips that can help your team meet the stringent demands associated with license application. Learn how to handle the most frequent roadblocks it involves, from time constraints to unexpected issues. Start preparing on time, gather the necessary information and resources, and enter the process confidently.

Once you get your license, the only thing left to do is enlist dependable cannabis banking help to ensure streamlined movement of money. You’ll soon be ready to start grabbing market share.

What to ask yourself before starting the application process?

What to ask yourself before starting the application process

Cannabis license applications require practical knowledge of the industry and resources that many teams find hard to put together. However, meticulous preparation increases your likelihood of successfully completing this process. By answering these four crucial questions, you can boost your chances of going through all the steps timely and with as few inconveniences as possible.

1. What kind of license does my company need?

Depending what area of the cannabis industry you’re in, you’ll apply for a suitable license. It’s not uncommon for entrepreneurs to rush through the stage of setting up their business, eager to start the actual operations.

However, your business is only likely to take off if you take a deep dive into current industry demands and determine how you can use them to your advantage. Carefully find a niche that fits your unique strengths, whether it’s running a dispensary, cultivating cannabis, or doing another service in the supply chain.

2. Who should I have on my team?

While licensing criteria differ between states, it is certain that your team’s expertise and experience will be evaluated. Your business needs a team that can meet both licensing requirements and the demands of daily operations. If your team lacks some type of specialized knowledge, you can hire a consultant to supply it.

3. How will I obtain funding?

Cannabis operators typically need funding to cover the cost of equipment, inventory, and other essential resources. Before you apply for your license, you’ll have to show investors that they’ll make the right move by injecting money into your business. It’s advisable to look for a provider of financial services, like Confia, which will give you easy access to financing opportunities.

4. What will be your contribution to your clients and the industry?

To prove you’ll be a responsible member of the industry, you have to find a consistent strategy for providing the kind of quality clients are after. In addition, it’s your responsibility to show your appreciation for your staff’s effort and expertise by giving them a sense of security. Your business plan should clearly reflect your mission to raise the bar by providing top quality and transparency.

Where can operators receive reliable cannabis banking help?

4 Questions to Ask Yourself When Applying for a Cannabis LicenseAspiring entrepreneurs who are putting together a cannabis licensing application have a steep road ahead of them. However, entering this thriving industry can be very rewarding if you have the right expert support to rely on. Confia has a unique set of membership options for cannabis operators, which give you access to tailored, industry-specific financial services.

Our API-powered, FDIC-eligible system uses cutting-edge automation to keep track of transactions and secure legal compliance. We’ll enable your clients to purchase your products effortlessly as well as provide you with reliable funding opportunities. Contact us to ease your company into the industry and give you a great head start.

Compliance Considerations for MRBs: What You Need to Know

Even though the cannabis industry is booming, there’s still a considerable lack of reliable banking services for cannabis operators. The hurdles encountered by these businesses, especially in the area of legal compliance, often exceed their resources. However, regulatory compliance is an indispensable part of leading a successful company. Without it, you may face legal issues. Your reputation could take a hit and your earnings could drop. You may even have your license taken away.

Read on to learn how to stay compliant and conduct your financial operations in a transparent way. You’ll get your company on the right track and eliminate the common impediments that hold professionals in the industry back. With these obstacles out of the way, there will be nothing standing in the way of your growth.

How do you maintain regulatory compliance as an MRB?

Maintaining compliance is a big responsibility that will require your ongoing attention. It’s an extensive and complex process that includes multiple careful considerations, ongoing education, and precise data collection. You’ll also need access to reliable reporting software. First and foremost, you’ll need detailed insight into the federal, state, and local legislation that applies to the cannabis industry.

Compliance Considerations for MRBsFor example, it’s vital that you achieve BSA compliance. The Bank Secrecy Act (BSA) imposes strict regulation to prevent money laundering and terrorist financing. All US financial institutions have to follow it to make sure they’re not aiding these illegal activities. They have to collect data about transactions and report them to the authorities. To prevent problems with the law and keep your license from being compromised, a record of your money transfers should be kept and your financial operations should be correctly and consistently audited.

To facilitate compliance management, there are certain strategies that you can try. They involve meticulous planning, continuous learning, and strict monitoring. However, they’re ultimately worth it because they protect your company. Here are some tips to help you along:

  • Stay updated: Legislation is changing by the minute. Keep up with the latest changes by signing up for relevant newsletters and visiting the websites of government agencies, like FDA, DEA, and USDA.
  • Never stop learning: To succeed in such a dynamic field, you can never sit still. You and your team should attend seminars to learn new and improved compliance strategies.
  • Keep an eye on the competition: Analyze how your competitors do things. Is there anything they’re doing more efficiently? You may be able to apply the same technique.
  • Share your experience: Interact with peers from the industry. You can exchange views on successful techniques and discover novel ways of dealing with legal demands.
  • Partner with the specialists: Although banks are reluctant to work with cannabis operators, there are innovative financial networks that can meet your need for banking solutions and automated compliance monitoring.

Where can I find streamlined banking services for cannabis operators?

Where can I find streamlined banking services for cannabis operatorsFor reliable banking support and strict adherence to regulatory compliance, get in touch with Confia. We’re a growing financial network that offers industry-specific services to businesses in the cannabis industry. Explore our membership options available to cannabis operators and go through our time-efficient application and approval procedures. You’ll soon gain access to our effortless platform and start managing your transactions smoothly.

As part of our comprehensive BSA program, we offer automated compliance reporting for filing, SOC-2 compliance procedures, and consistent monitoring of all transactions. In addition, you can have the full-scale backing of our financial services, including secure consumer payments, B2B and B2C transfers, payroll processing, and access to our excellent lending program. Reach out to us today to handle common compliance hurdles without hassle!

Managing a Dispensary: All You Need to Know

Because of the unique characteristics of the cannabis industry, the job of a dispensary manager involves certain specifics that differ from the duties of managers in other fields. While it can be an immensely rewarding and lucrative venture, managing a dispensary comes with its own set of challenges.

After you’ve created a thorough and precise business plan, found a funding opportunity that works for you, and obtained access to cannabis banking services, it’s time to delve deeper into the daily operations of a cannabis business. Keep reading to explore the day-to-day duties of a dispensary manager and see how you can be an effective leader for your staff.

How do you manage a dispensary?

Managing your budtenders, your inventory, and legal regulations are crucial components of running a successful business. Here are some practical tips to help you do it right:How do dispensaries handle cash

  • Provide training and resources: Budtenders need to be up-to-date with the best practices in the industry in order to do their job well. Provide them with both initial and ongoing training, monitor their performance, and offer assistance when needed.
  • Conduct regular meetings: Meet with your staff periodically to discuss goals and concerns. This could be the perfect time to give and receive feedback and agree to adopt novel, more productive strategies.
  • Give praise and nurture team spirit: Get the staff together and make them involved in setting goals for the company. Ask everyone to suggest more effective ways of doing things. Praise excellent performance and encourage top performers to share their tips.
  • Keep track of the inventory: To minimize losses and increase gains, you will need to carefully monitor purchases, store and organize your products safely, and fulfill orders on time.
  • Make sure you’re operating legally: Keep an eye out for the latest changes in cannabis regulations by checking relevant government websites. You can ensure financial and other forms of compliance and avoid trouble with the law with the help of a leading provider of cannabis banking services, like Confia.
  • Learn and adapt: Keep up with the latest innovations in the industry by attending seminars and talking to peers. Adjusting to novel methods and staying one step ahead of the competition makes all the difference.

How do dispensaries handle cash?

Since traditional banking has been largely out of cannabis operators’ reach, they often choose to work on a cash-based model. This means that they have to store, transport, and protect large amounts of cash on a regular basis. By doing so, however, they put themselves at risk of financial loss through inside or outside theft.

To protect your earnings, it’s highly advisable to find a secure cashless payment option and dependable banking solutions that are becoming available to cannabis operators nowadays. These modern platforms provide cannabis companies with the same standards of service that are taken for granted in other fields, but difficult to obtain in this one.

How do I find innovative cannabis banking services?

How do you manage a dispensaryConfia offers straightforward and time-saving financial services to cannabis operators in order to help them overcome one of the most challenging aspects of the industry – banking. You’ll be able to monitor your transactions anytime, anywhere using our sophisticated online platform. All of your financial operations will be strictly regulated and compliant. In addition, we’ll help you gain access to the best financing options.

Get the professional assistance you need to run a booming dispensary or another business in the cannabis supply chain. Focus on solidifying your brand and creating a niche for yourself while we handle the financial side of your business with precision, speed, and diligence. Reach out to us to establish a fruitful partnership with one of the best banking service providers.

A Cannabis Operator’s Guide to Writing a Business Plan

If the current upward trend continues, the legal cannabis market in the U.S. could surpass $40 billion in annual sales by 2026. With these promising estimates, the future of the cannabis industry looks very bright. This means that now’s a great time to get in on the action and find your footing in this sector.

If you’re interested in running a company in the cannabis supply chain, you will benefit from working out a comprehensive business plan. With clear goals, innovative strategies, and extensive cannabis financial services, you will have increased chances of establishing and growing your brand. Read on to learn how to put together a meticulous business plan that checks all the boxes.

How to write a business plan for a cannabis company?

How to write a business plan for a cannabis companyCreating a solid business plan means laying the groundwork for all of your future operations. A cannabis operator can benefit from thorough planning in several ways. With a detailed business plan, you’ll have a higher likelihood of attracting investors and candidates for other managerial roles. A comprehensive plan can also help you receive your business license more easily.

To get started, you could try finding a premade template. Another option is to consider purchasing specialized software that’s intended for this purpose. Alternatively, you may want to hire a professional consultant with relevant experience in the field.

It’s advisable to pay attention to these general guidelines:

  • Your spelling and grammar should be correct and consistent.
  • It’s best to keep your sentences short and precise.
  • The tone should be professional and straight to the point.
  • Adding bullet points to increase readability is a good idea.
  • It’s advisable to add charts to illustrate your points more clearly.

What sections should I include in my business plan?

You could either make a traditional business plan, which is more detailed and better if you’re looking for funding, or a lean business plan, which is simpler and adequate for your in-house needs. They will generally include some or all of the following parts:

  • Executive Summary encapsulates the business plan and presents the company’s mission and objectives.
  • Company Description outlines what your company does and how it differs from other companies in the field.
  • Market Analysis showcases your research-based understanding of the market and your competitors’ best practices.
  • Organization and Management presents your business structure (sole proprietorship, partnership, limited liability company, etc).
  • Products and Services talks about the services or products you offer as well as how they benefit your clients and stand out from the competition.
  • Marketing Strategy explains how you’re going to advertise your business and generate more leads.
  • Financial Plan says why your outlook is positive and how you intend to generate revenue.
  • Funding Request should be added if you’re searching for financing options, to explain how much funds you require and how you’re going to spend them.
  • Additional Documents, such as credit history, permits, licenses, and resumes, may be included if necessary.

To get the finer details of your plan ironed out, explore more resources for creating a business plan assembled by the Small Business Administration. Don’t forget to go back to your plan and adjust it as your business expands and its needs change.

Who provides best-in-class cannabis financial services?

Who provides best-in-class cannabis financial servicesConfia is a solution to cannabis operators’ essential need for effective, streamlined, and transparent financial services. If you’re a cannabis operator seeking access to funding, robust banking capabilities, and automated compliance, you’re in the right place.Receive a powerful banking toolkit that can facilitate the management of your cannabis business. Give us a call and let our dedicated experts help you with every facet of your financial operations.

2021 SAFE Banking Act: What Cannabis Operators Need to Know

Even though cannabis is legal in most states across the U.S., behind the scenes, dispensaries, manufacturers and producers all struggle with one common thing – banking. Unlike food or clothing industries, banks are not handing out loans or facilitating seamless money transfers for marijuana-related businesses (MRBs). As a result, cannabis companies are struggling to get the funds and services they need to succeed and operate as a true business.

That’s where the SAFE Banking Act comes into play.

What is the SAFE Banking Act? First introduced in 2019, the SAFE Banking Act has continued to push the federal government along to consider better, safer banking options for MRBs. However, years later, concerns still loomed from all sides of the industry that needed to be addressed. Thankfully, these issues were addressed this year, and in a monumental effort to advance the industry, a revised SAFE Banking Act was passed by a vote of 321-101.

The revised bill, which still needs to pass through the Senate, will create vital protection for financial institutions, from fines and other penalties, if they provide their services to legitimate cannabis-related businesses.

Why Do Banks Need Protection?

Due to cannabis being federally illegal, financial institutions’ hands are often tied when it comes to helping MRBs find the funds they need to operate and scale. This is because federal banking regulators have a hawk’s eye on these institutions, and are ready to enact hefty fines and penalties.

What Restrictions Does the SAFE Banking Act Now Have?

The excitement around the SAFE Banking Act stems from its ability to prevent federal banking regulators from implementing certain penalties, such as:

  • Terminating or limiting a depository institution’s access to deposit insurance or share insurance;
  • Prohibiting, penalizing, or otherwise discouraging depository institutions from providing traditional banking services to a covered business;
  • Recommending, incentivizing, or encouraging a depository institution not to offer financial services to an individual or business entity because of their status as, or relationship with, a covered business; or
  • Taking adverse action on a loan made to a covered business

Why is the SAFE Banking Act So Important?
The cannabis industry has a lot of money tied to its name. In fact, it is estimated that in 2026, there will be $41 billion in cannabis sales in the United States alone. The problem is – a large portion of this money is handled in cash.

The safety of employees and businesses are at stake when banks do not allow MRBs to operate with the same financial framework as other industries. However, not only does the SAFE Banking Act ensure safety, it can also help MRBs sustainability in this competitive environment. Right now, it is extremely difficult to get a loan as an MRB. Which means in order to scale and properly market your company, cannabis businesses need to find outside investors, borrow money from friends and family, or potentially risk having to shut down altogether.

Without access to banks and its financial services, a legitimate cannabis company, even with a great business model, may be pushed to the brink of survival.

Financial Services to MRBs Right Now

The limited number of banks that do offer cannabis banking programs, do so at an extremely predatory price. Confia affords MRBs the same banking rights and privileges as any other industry, providing the safety, and accountability, these businesses deserve.

As a leading system that has been specifically designed to support the compliance and transactional complexity of the cannabis industry, Confia provides MRBs with streamlined access to integral cannabis business funding and banking services. These services include automated compliance, deposit balances, access to lenders and affordable electronic transactions.

PRESS RELEASE: Confia Brings Technology-Based Cannabis Transaction and Banking Services to East Coast

Confia Brings Technology-Based Cannabis Transaction and Banking Services to East Coast

Confia(“Confia” or the “Company”), the leading technology platform for financial compliance, B2B/B2C transactions, and secure banking services designed for the cannabis industry, announced today its expansion to the East Coast, starting with Massachusetts, as the cannabis market continues to grow. Confia operates as the dba for PointChain. The Company is offering its core banking and transaction capabilities to East Coast cannabis operators, and plans to add additional services in short order. The expansion accompanies its launch of new marketing divisions and opening of new headquarters in Irvine, Calif.

The ever-changing landscape of transactional banking for the cannabis industry has propelled Confia’s growth in recent months, where it now has full coverage in California, the world’s largest legalized cannabis market. Utilizing programmatic technology, Confia provides cannabis operators with access to affordable and efficient financial services that support the compliance and transactional complexity of the cannabis industry. With services such as API and web-based capabilities and new transaction features including escrow-based transaction contracts, Confia has created a technology-based ecosystem designed to enable the entire cannabis supply chain.

Following its early success on the West Coast, the Company is expanding to the East Coast market, with the goal of assisting up-and-coming operators looking to scale into new and emerging markets. The Company is beta testing the platform first in Massachusetts before increasing Confia’s service area up to nine states by the end of 2021.

“Confia differs from other banking solutions in that it not only provides access to traditional banking services for cannabis businesses, it leverages an industry leading automated platform that offers a full-suite of transactional-based financial solutions,” said Mark Lozzi, CEO of Confia. “We built Confia with the entire cannabis supply chain in mind, not just as a banking solution. For example, our cutting-edge automated transaction contracts will simplify the flow of funds within the industry, create trust, and instill confidence among cannabis operators transacting with one another. We have worked with some of the largest operators on the West Coast, and with new states coming online every day, we are both excited and humbled to be taking our platform to the East Coast, starting with our beta launch in Massachusetts, and our sights set on Michigan and Florida next.”

Confia differs from other cannabis financial service providers with benefits such as:

  • FDIC-insured eligible accounts
  • Low-cost, high-limit cash deposits
  • Incoming/outgoing ACH & wires
  • Check deposits and payroll processing
  • Automated compliance filing (SARS/CTRS) and tax payments
  • Touchless and low-cost consumer transactions

Confia streamlines complex financial processes for the cannabis industry, addressing both compliance and secure payments in real time. As a licensed money services provider, Confia offers traditional banking and cash management services, bill pay services, unlimited B2B payments, API-powered payment solutions that service both businesses and the consumer, and lending solutions desperately needed in the cannabis space. To learn more about Confia, visitwww.confia.io.

About Confia

Confia, operating as the dba for PointChain, is a financial transaction platform that offers the cannabis industry digital bank-like and cash management services, bill pay, unlimited B2B payments, API-powered payment solutions that service both businesses and the consumer, and lending solutions. Confia processes payments in real time, and the platform contains ongoing compliance features and offers trusted relationships with other member companies and clients. To learn more, visit www.confia.io.

7 Questions to Ask a Cannabis Lending Company

Because of the legal status of marijuana and THC as Schedule 1 narcotics, cannabis-related businesses typically encounter obstacles with funding and financial operations. Since banks are unwilling to accept the risk of working with them, most MRBs are unable to receive financing going the traditional route.

However, even if you can’t receive a bank loan, there are other paths to obtaining operating capital. Cannabis lending companies can make it available to you. To make sure you partner with a dependable non-bank lender, double-check all terms and conditions beforehand. Read on to learn what questions to ask your lending company and gain a competitive edge in the rapidly expanding cannabis industry.

What should I ask when choosing an MRB lending company?

What should I ask when choosing an MRB lending companyKnowing where you stand before you commit to a loan is very important. If you’ve already worked out a business plan, you know exactly how much and how soon you need the funds and how you’re going to invest them. Now you have everything you need to discuss further steps with your lenders. To avoid overlooking a crucial detail, remember to touch on these key points.

  1. Do you lend to cannabis-related businesses? First things first, you’ll need to make sure that they are willing to provide financial resources to a company that operates in a high-risk industry.
  2. What are my funding options? You should explore several MRB lending opportunities and choose the one that fits the type of your business (dispensary, manufacturer, distributor, etc.), the amount and term of your loan, and other factors.
  3. How fast can I receive the funds? Sometimes, entrepreneurs may need a very expedient loan approval (for example, to urgently boost production and meet client requirements on time). See if your potential lender can meet your expectations.
  4. Does your loan term fit my business? After you’ve decided whether you require a short or long-term loan, check if the lender is able to supply you with your preferred option.
  5. What’s the interest rate and overall cost? Try comparing several options to see which one is the most affordable. The total price is an essential factor in determining how much the loan will pay off in the long run.
  6. What are my payments due? Determine what your payment schedule will be like and whether this matches your profit inflow (for example, if your earnings are pretty steady each month, regular monthly installments would probably be the most feasible option for you).
  7. What should I provide on my end? Although you’re operating in an unconventional field, MRBs apply for loans in much the same way as businesses in other industries. You will need to submit your credit risk report, bank statements and other financial documents, certificates, list of managers, and other records your lender may ask for.

How do I find one of the best cannabis lending companies?

How do I find one of the best cannabis lending companiesHandle the challenges of running a cannabis business by partnering up with Confia. We are a forward-thinking team committed to providing practical and innovative financial services. We assist dispensaries and other companies in the cannabis supply chain, making it possible for them to manage their finances in an intuitive way.

With us as your ally, you will receive easy access to reliable funding and streamlined banking. Finding a suitable financing option in a high-risk industry can be challenging, but we can secure it for you. You can expect efficient funding solutions, prompt diligence, meticulous pre-approval, and low-cost services. We’ll also make sure that every aspect of your finances stays compliant with relevant regulations.

Get in touch with us today to set your business up for success.

Best Ways to Finance Your Cannabis Business

The cannabis industry is growing by the day as more and more states pass regulations allowing for the sale of cannabis. This is great news for aspiring business owners who want a piece of the action. However, despite the fact that medicinal and recreational use of cannabis is legal or decriminalized in most states, federal bans are still in place, which creates numerous difficulties for Marijuana Related Businesses (MRBs).

If you’re looking for cannabis business loans, traditional funding options are usually out of reach. However, this is no reason to worry, since other ways to fund your MRB are available. Keep reading to discover the ins and outs of cannabis company financing and how to obtain it.

How do cannabis companies get funding?

How do cannabis companies get fundingAlthough you may expect banks to follow the wave of decriminalization and offer budding MRBs with more growth opportunities, this is unfortunately not the case. Even if cannabis is legal in your state, all cannabis-related transactions are still seen as illegal at the federal level. This is why financial institutions that are federally insured are prohibited from lending to businesses in the supply chain. It also means that you’ll need to explore other possibilities.

You can start by researching two funding options:

  1. With equity financing, you’re selling shares of your business to the lender and getting money in return. The lender’s investment is paid back through dividends. It’s only available to companies that are already in business and garnering profit.
  2. Debt financing, on the other hand, means you’re taking out a loan that you’ll be repaying later on, with interest. This is the most popular method used by new MRBs.

How to get investors for a dispensary?

As the cannabis industry gains momentum, more and more investors are becoming interested in putting their money in booming businesses in the field. If you’re managing a dispensary, you should create an elaborate business plan to boost the likelihood of attracting potential investors. Here are some ideas to use if you’re not sure how to find them:

  1. Show up at industry-relevant events: Attend seminars, conventions, and other events that connect the professionals in the industry. If you mingle with the right crowd, the chances are you’ll hear of or meet investors who are interested in working with you.
  2. Take advantage of business directories: Get the word out about your business by using online MRB directories, where investors often browse for new partners.
  3. Use online resources: Social networking sites are a great place to start developing your brand and connecting to potential investors and clients. Join groups and forums that are specifically geared toward cannabis businesses.
  4. Talk to people who’ve already been there: Ask other professionals you know how they’ve obtained funding. They could put you in touch with their investors.

How can I get access to helpful cannabis business loans?

How to get investors for a dispensaryAre you an ambitious entrepreneur searching everywhere for the right financing solution? Though you may have a harder time obtaining funding than professionals in other industries, with proper support of experts in MRB banking, you will find a suitable avenue to advance your company. If you contact Confia, a dependable banking network that assists cannabis businesses, you’ll get all the necessary financial resources to grow your brand.

We understand the industry-specific obstacles you encounter as an MRB. Our system of holistic financial services has been designed to overcome these hurdles directly. Our services include streamlined banking capabilities, integrated API compliance, dependable methods of securing financing, and competitive fees.

We’ll be your trustworthy ally throughout your journey. Reach out to us today to start your climb to the top.