Arizona cannabis business loans are hard to come by. So what if you run into a crippling business expense? The bank isn’t an option, equity is expensive, and crowdfunding offers no guarantees. So how do you find the help that’s right for you?
A hypothetical grower already has a dispensary lined up to buy his first crop, but then, the utility company raises his electricity bill, doubling his cost of electricity per kilowatt hour. Since it’s his first crop, he’s strapped for cash.
It is a catch 22; until his first crop comes in he won’t be able to pay his electricity bill, but if he doesn’t have electricity, he can’t grow his first crop. He’s stuck between a rock and a hard place. He needs a quick injection of cash, a small loan which he can pay off in 70 days after his plants mature.
Let’s assume he only needs $50,000 to cover the cost of electricity. Given his excellent credit score, he considers getting a personal loan from a bank first. All is well, but he hears a vague alert chime on the loan officer’s computer.
Without any explanation security officers escort him out of the building.
What are some other sources of Arizona cannabis business loans
Our poor grower isn’t interested in selling ownership to an equity partner. Selling 10 percent of his business just to pay his electricity bill is not a reasonable proposition for him.
So, he eagerly makes his plea on Kickstarter. It’s crickets from the peanut gallery, as his loan sits unfunded on the site. He can’t wait much longer as his little seedlings will wither and die if he doesn’t get money fast.
He hears from a friend about another type of alternative financing, one that might solve all his troubles.
Arizona hard money loans can help fuel short-term costs in your cannabis business.
He approaches a hard money provider. They offer him a loan on the condition that he pays it back in 120 days. He will also have to pledge his grow facility as collateral. The loan is a little expensive for his taste, but its either hard money or bust, so he goes ahead and closes the deal. The funding comes through in short order, and within 70 days his crop is in full bloom ready to be harvested and sold to a nearby dispensary.
With these funds, he’s able to pay back his loan quickly, and he earns enough money to cover his utility costs until his next harvest.
Because he already had a buyer lined up and he knew exactly when his crop would come in, he didn’t put much at risk by pledging his grow house as collateral. Hard money got him the funds he needed without having to sell ownership in his business or wait on the much over-hyped kick starter. If you are looking to “grow your business,” and run into an unexpected expense, hard money can help.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.