No Banks? No Problem: How One Company Is Fixing The Cannabis Industry's Capital Bottleneck

"When we unlock cash flow for a business, we're not just lending money—we're fueling growth," says Adam Stettner, founder and CEO of FundCanna. With a career spanning three decades in finance, Stettner has built a reputation for creating financial products that prioritize client needs, a philosophy he brings to the underserved cannabis industry.

A Lifelong Passion For Numbers

For Stettner, numbers have always been more than calculations: they're tools for solving problems. "I've always been more comfortable with numbers than with letters or words," he explains. "I see trends in numbers that help me make sense of things in a way I can't with other mediums." This innate knack for identifying trends laid the foundation for a career defined by innovation and adaptability.

Stettner's professional journey began in New York's apparel industry, where he immersed himself in manufacturing, distribution and sales. But it was the financial side of operations—how businesses funded inventory and production—that truly captivated him. This curiosity carried him to Wall Street and later to student lending, where he oversaw $14 billion in on-balance-sheet originations in just five years.

His expertise in designing financial products to meet real business needs led him to Reliant Funding, a company he founded. There, he helped deliver over $3 billion in on-balance-sheet funding to nearly 100,000 small and medium-sized businesses (SMBs) across the U.S., underwriting more than a million SMB funding applications. These experiences reinforced his belief in rethinking traditional lending structures to better serve business owners.

"Too often, financial products are built around rigid credit boxes," Stettner says. "If you don't fit the box, you don't get funded. I wanted to change that by understanding the client first, then designing a product that fits them."

This client-first ethos became the driving force behind the launch of FundCanna in 2021. Recognizing that cannabis was essential, rapidly growing and underserved by financial institutions, Stettner saw an opportunity to apply his expertise to one of the industry's biggest hurdles: access to capital.

"Cannabis was an obvious next step," he says. "The industry is grossly underserved when it comes to financing."

Bridging The Cannabis Financing Gap

FundCanna is Stettner's response to the cannabis industry's unique financial challenges. Despite the $35 billion annual market, cannabis remains federally illegal, making banks hesitant to lend. A 2022 survey from Whitney Economics revealed that over 70% of licensed cannabis companies identified the “lack of access to banking or investment capital” as their top challenge, underscoring the severe funding bottleneck in the industry. Even ancillary businesses such as equipment suppliers face barriers to accessing financing.

"The cannabis industry has a fundamental mismatch between cash outlay and revenue," Stettner explains. Cannabis businesses are often caught in a vicious cycle: immediate payment obligations, like equipment or supplier costs, while revenues take months to materialize. "The average time from cash outlay to revenue in cannabis is between four and five months," he says. "But suppliers demand payment within zero to 30 days."

FundCanna offers a lifeline with flexible, short-term debt financing tailored to these needs. Borrowers can repay early without penalties, paying only for the time they've used the funds. "We're not taking equity or doing convertible notes," Stettner emphasizes. "We provide straight capital and structure repayment terms that work for the client."

This model is particularly valuable for operators making significant investments, such as purchasing grow-room equipment or inventory, which often take several months to generate revenue after the initial expense. Yet, traditional lenders rarely offer solutions that accommodate these delayed cash flow cycles. "The more we talk about the client's needs, the better we can structure terms that allow them to scale without being burdened by debt," Stettner says. On average, businesses working with FundCanna grow by 61% in their first year of borrowing.

Financing Tailored To Cannabis, Not Tradition

FundCanna isn't simply repurposing traditional financial products for the cannabis space, it is creating solutions specifically designed for the industry's unique challenges.

The company's financing model addresses critical pain points, such as mismatched cash flow cycles and accounts receivable issues. Suppliers typically require upfront payments, while dispensaries and buyers often delay theirs, leaving businesses in a financial bind. FundCanna bridges this gap by covering supplier costs and aligning repayment terms with revenue cycles. "We'll pay the supplier now, allowing our client to focus on generating revenue without worrying about immediate payment," Stettner says.

The flexibility of FundCanna's terms is another key advantage. Loans typically run for 12 to 24 months, but borrowers can pay them off early without penalties. "It's like the ultimate discount," Stettner explains. "Clients can pay us off anytime they want and their Debt Service is structured to be as manageable as possible." By smoothing out cash flow and enabling operators to invest in growth, FundCanna helps businesses thrive in a challenging financial landscape.

Financing With Empathy: Meeting Cannabis Businesses On Their Terms

Before launching FundCanna, Stettner spent a year immersed in the cannabis industry. He interviewed operators and studied the supply chain to pinpoint the specific gaps traditional lenders couldn't, or wouldn't, fill. "I wanted to understand the pain points before putting a dollar out," he says. "It's about meeting the client where they need us to be."

One key insight he gained was the discomfort many cannabis operators feel when discussing money-related issues. "No one likes talking about their finances. But there's no growth without discomfort. Our role is to create a safe space where clients feel supported, not judged."

By acknowledging the challenges cannabis operators face, FundCanna has built a reputation as a trusted partner rather than just a lender. The company's emphasis on understanding client needs and offering tailored solutions has fostered strong relationships and measurable success. "When businesses see that our product works for them, they're eager to pay us back so they can use it again. In fact, our average customer has already returned for additional funding three times," Stettner says.

Custom Financing For Cannabis' One-Of-A-Kind Needs

What sets FundCanna apart is its ability to provide funding tailored to the cannabis industry's unique dynamics. Unlike traditional banks, which approve only 20 to 25% of small business applicants even in mainstream industries like retail or construction, FundCanna's products are purpose-built to address cannabis' cash flow gaps and operational hurdles. The American Bankers Association has noted that federal and state law conflicts leave banks “trapped between their mission to serve the financial needs of their local communities and the threat of federal enforcement action,” creating an enduring reluctance to engage with cannabis businesses.

"Banks will dip a toe in but never dive in fully," Stettner says. "Cannabis is a vice industry and banks will always view it as higher risk."

FundCanna fills this gap with financing solutions that work within the sector's regulatory and operational constraints. "We're not here to compete with banks; we're here to complement them," Stettner explains. "When a client becomes bankable, we want them to use the bank. Until then, we're the bridge money, the gap filler."

Preparing For The Future

With federal legalization on the horizon, many wonder how FundCanna will adapt when traditional banks enter the space. For Stettner, the answer is simple: FundCanna will thrive. "Even in a federally legal environment, cannabis businesses will remain underbanked," he says. "Banks will test the waters cautiously and may lend to a handful of billion-dollar operators, but the vast majority of cannabis businesses—those generating under $100 million annually—will remain underserved, just like traditional SMB."

FundCanna isn't betting on legislative changes. Instead, it's focused on providing flexible, purpose-built financing that works in any environment. Stettner is clear about the risks of lending in cannabis: traditional reinsurance options aren't available for cannabis loans, making effective underwriting crucial. "If someone's going to insure you against a loss, they're going to charge you more than whatever the loss is," he explains. "Why not self-insure by having effective underwriting and not over-leveraging your clients?" This proactive strategy has allowed FundCanna to mitigate risks and maintain low delinquency rates, ensuring the company thrives in a high-stakes environment.

Cultivating Trust, Driving Growth: The Future Of Cannabis Financing

Trust is at the heart of FundCanna's success. Stettner knows that borrowing money can feel like a vulnerable act, especially for cannabis operators who have long faced barriers to financing. "We're not just lending money; we're building relationships. Our clients know they can call us if they're struggling, and we'll work with them to find a solution."

This approach has led to tangible results: FundCanna's clients have experienced measurable success, with many significantly expanding their operations in their first year. Delinquency rates remain low, underscoring the strong partnerships and trust FundCanna fosters with its borrowers.

For Stettner, it's about more than just lending; it's about making a difference. "This space is filled with passionate, resilient people who want to do the right thing. Our job is to meet them where they are and give them the tools they need to succeed."

Cover image made with Canva

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