Best Companies for Dispensary Financing

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Contributor, Benzinga
August 1, 2022

Financing a dispensary might seem like a difficult task, but taking the time to find the right partner has the potential to exponentially improve the business. Cannabis dispensary financing is a growing business that continues to evolve and expand. The financing provides dispensaries with the opportunity to make much-needed upgrades and expansions while planning for the future. When searching for the best financing option, consider selecting a partner that understands the vision of the dispensary. Before selecting a financing partner or using a financing platform, research the rules and regulations to ensure the dispensary remains compliant. 

The Best Dispensary Financing Platforms

Obtaining funds for your dispensary has the potential to improve both the current and future situation of the business. Consider which financing option would work best to address the needs of the dispensary while examining potential fees, loan amounts, and rates. 

Canna Business Resources

Think of Canna Business Resources as a one-stop shop for all the financial support your dispensary needs. The firm offers specialty cannabis dispensary loans, helping you kickstart your dispensary, expand, manage new projects, handle payroll, etc.

Working capital loans from Canna Business Resources require no proof of revenue, tax returns or pay stubs. The firm simply reviews business income, credit ratings, bank deposits per month and other factors. In short, you’re not considered “risky” just because you run a dispensary. You have a lending partner in Canna Business Resources, and you work with a personal business advisor who will steer you toward a loan that is perfect for your business.

Finally, Canna Business Resources makes it possible for small businesses to get started in their respective communities. While you may feel the community needs a cannabis or CBD dispensary, it can be hard to obtain funding. That is why you look to Canna Business Resources to learn what is possible.

GUD Capital

GUD Capital is located in Los Angeles, California, and provides a wide variety of cannabis business financing tools such as private loans, real estate loans, equipment leases, and even cash advances. The company typically provides loans starting as low as $5,000 and extending up to $20,000,000. With connections to over 4,000 different lenders, GUD Capital maintains strong relationships with individuals that are frequently capable of alternative financing. Lenders are available within all states, but it is unlikely that each cannabis-related offer will be available in every state. In general, the timeline for funding depends on the specifics of each loan. For example, the timeline for traditional financing can extend up to 90 days, but alternative funding can be obtained in less than 10 days. Private loans for the cannabis industry typically take up to 2 weeks to fund with a maximum rate of 25% in general. The company provides loans to individuals with credit scores as low as 500 but with much higher rates. In terms of fees, the company frequently refrains from charging fees directly and instead obtains payment from lenders. However, in certain situations, the company has been known to charge around 2% of the final facility number. Interested individuals can apply online or call the phone number provided on the website.

Dynamic Alternative Finance

The funding solution, Dynamic Alternative Finance was specifically designed to assist alternative industries such as the cannabis industry to obtain funding. The company provides a wide range of financing options such as equipment leases, real estate financing, and working capital loans. Dynamic Alternative Finance offers a cannabis business financing option called Canna Business Financing which offers loan amounts under $250,000. The offered credit limits depend on personal guarantee and individuals are able to apply for loans up to $200,000 and have the potential to receive pre-qualification within less than 2 days. The company has both a cash option such as term loans and a credit option that provides a revolving credit line. The revolving credit line typically requires a credit score above 700 and includes 0% interest during 12 to 18 months. In contrast, term loans are a kind of personal loan that have rates up to 13.9% and usually require credit scores above 680. Repayment terms on the loans can extend up to 7 years. Overall, the company provides various funding options designed to work with individuals in the cannabis industry.


GOKapital is located in Miami, Florida, and offers cannabis business loans in addition to a wide range of other financial solutions such as real estate financing. Loan amounts frequently extend between $50,000 and $5,000,000 which makes the company a strong option for dispensaries interested in obtaining substantial funding. In addition, the requirements are relatively relaxed and indicate that an individual must have a credit score above 500 as well as $150,000 in yearly sales to potentially be eligible for a Business Cash Advance. It’s possible to receive approval in less than a day after completing an application. The exact fee structure was unclear. GOKapital provides an excellent funding option for dispensary financing, but it’s important to keep in mind that like most institutions that provide loans and financial assistance to businesses within the cannabis industry, the loans are not originated from an FDIC-insured bank. In general, the FDIC, which is also known as the Federal Deposit Insurance Corporation, oversees financial institutions, but due to regulations, it’s unlikely that a cannabis-related company will easily be allowed to receive funds from an FDIC-insured bank.  

Diamond Business Loans

Located in California, Diamond Business Loans offers multiple financing options for individuals within the cannabis industry. One option that the company provides is a capital program where minimum loans begin at around $20,000 for individuals with a minimum credit score of 680. The second option can assist with commercial real estate purchases up to $15,000,000. The third option provides equipment programs such as financing for hemp equipment. One major benefit of the company is that it doesn’t charge an application fee but the additional fees were unclear. Diamond Business Loans recommends researching which states have legalized cannabis in terms of recreational or medical use to more effectively understand which regulations and laws apply to your specific situation. 

United Capital Source

United Capital Source provides small businesses with the opportunity to obtain financing for cannabis-related needs. The funds are unsecured which means that the loans do not need to be secured using collateral. It’s possible to obtain funding within a single day. The loans can be used to address real estate needs, staff expansion, and purchasing inventory. Potential loans have the ability to span between $5,000 and $100,000. However, it is unclear what potential fees or minimum credit scores are required to take out a loan. The company recommends reaching out to obtain further information. 

Why Do Dispensaries Need Financing?

Dispensaries might require financing for a variety of different reasons such as renovations, expansion, product purchases, adding additional staff, and purchasing new equipment. Building a small business requires funding combined with a clear direction for the company. Before applying for funding, contemplate the benefits of speaking with a financial or business professional to ensure that your dispensary is headed in the right direction.

Ability to Attract More Customers: Financing ultimately allows a company the ability to grow its customer base by having more resources at its disposal to advertise, promote, and create quality products. 

Purchase Equipment: It helps dispensaries invest in equipment that can expedite daily functions while also helping to save money. Equipment can be expensive so having financing makes larger purchases more attainable for a small or growing business.

Adding Staff: Hiring employees promotes the expansion of a dispensary while freeing each member of the staff from a heavy workload. More effectively spreading out tasks has the ability to improve the quality of work and increase productivity. 

Purchase Inventory: Financing helps dispensaries to purchase additional inventory to provide a wider amount of goods to customers. Expanding or simply adding products allows a dispensary to sell more down the line. 

More Easily Achieve Business Goals: Overall, the benefits of financing are relatively endless because it has the ability to offer dispensaries an added amount of freedom. Financing allows businesses to obtain tools and equipment that would not typically be available with a lesser amount of funds. 

Benefits of Finding a Dispensary Financing Partner

Finding the best dispensary financing partner has the ability to provide multiple benefits such as a communicative and positive relationship with your loan officer, a mutual understanding of the cannabis industry, and a strong partnership centered around respect. Remember, maintaining a strong relationship with your financing partner takes time and communication so consider reaching out and remaining friendly with your partner at regular intervals throughout the year. 

Strong Partnership: A strong relationship between a financing partner and a dispensary can help create better funding opportunities. Get to know your loan officer. Remember, maintaining an active relationship with an individual such as a loan officer promotes open communication. Keep in mind that loan officers are people that help the dispensary with various methods of funding. Loan officers tend to deserve a certain level of respect and attention. Having an open dialogue with a financing partner has the ability to improve interaction and allows information to flow more freely. 

Similar Goals: A convenient and also mutually beneficial part of selecting the ideal partner stems from having similar goals. For example, working with a financing partner interested in growth has the potential to propel a young dispensary to the next stage. 

Mutual Understanding of the Industry: A key benefit of selecting an experienced partner comes from the ability to benefit from your partner’s knowledge of the industry. Selecting a dispensary financing partner that’s familiar with the industry allows you the opportunity to grow at a more efficient rate. Partnerships are a special type of bond that can prove especially beneficial for dispensaries that are just starting and have the ability to largely benefit from industry information. 

Mistakes to Avoid When Choosing Dispensary Financing

Avoid making common mistakes when selecting a dispensary financing option. Remain aware of the rules and regulations associated with the industry to ensure compliance and avoid facing legal complications down the road. In addition, think about circumventing funding options with high-interest rates. Before choosing a financing option, have a clear understanding of the expectations surrounding the fees, rates, and general compliance. 

Compliance: A key factor when considering what dispensary financing option to select is the associated level of compliance. Within the cannabis industry, obvious differences remain between the classification of CBD and hemp products. In addition, the variation between state and federal regulations for CBD products has the ability to leave harmful gaps where unaware individuals can potentially get trapped. Avoid failing to comply with specific regulations by working with a well-versed financer that understands the specific inner workings within your area. Contemplate the benefits of working with a compliance professional to ensure that the dispensary remains easily operational. 

High-Interest Rates: Certain financing institutions have the ability to charge elevated interest rates on loans. The high-interest rates have the potential to make it difficult for a dispensary to promptly pay off loans. When searching for financing, examine the interest rates and potential hidden fees. The fees in combination with heavy interest rates can add up. Before agreeing to a loan, think about speaking with a financial professional to receive assistance on the next steps in the process. 

Too Large of a Loan: Obtaining too aggressive of a loan has the potential to over-burden a young and growing dispensary. When examining different funding options, know the difference between secured and unsecured funding. Secured funding has the potential to adversely impact a dispensary if the dispensary fails to make payments because secured funding typically means that the debt is tied to collateral. If possible, avoid entering into an overly ambitious loan. Instead, think about opting into a reasonable funding selection such as a loan that doesn’t have overly aggressive minimum payments. 

Frequently Asked Questions

The legalized cannabis industry is still relatively new and continues to expand at a rapid pace. Keep in mind that the current rules and regulations are likely to change and adapt to work alongside the industry as time goes on. Consider speaking with industry and financial professionals if you have any questions or concerns when seeking financing.


How do I find an investor for a dispensary?


Finding an investor for a dispensary has the potential to be easier than you think. One strong way to find an avid investor is to ask around within the cannabis industry. An individual within the field may know or even use an investor that’s eager to assist a promising dispensary. Another alternative method is to reach out to one of the companies dedicated to connecting investors with individuals looking for funding. For example, contemplate the potential benefits of working with a capital venture fund or alternative financing platform to obtain funding. Keep in mind that not all investors will work best for funding the dispensary so have a clear vision of the dispensary’s goals when talking with potential investors. 


How do cannabis stores bank?


Banks in certain locations have the ability to provide tools such as checking accounts and cash pickup services for cannabis stores. Cannabis stores have the ability to use banking services offered by various financial institutions provided that the dispensaries are compliant at both the state and federal levels. In general, cannabis stores must navigate banking in an alternative fashion to other businesses because of the unclear and varied regulations in place. For example, banks tend to shy away from extreme risk so the cannabis industry tends to remain a relatively underserved market. Luckily, the list of CBD-friendly financial institutions continues to grow and includes certain credit unions and banks. The exact tools and resources vary from institution to institution so be sure to ask questions before opening an account.