How to Get Fast Cannabis Funding in Time for 4/20

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Contributor, Benzinga
April 11, 2023

Many industries have a unique holiday or selling season. Cannabis is no different. April 20 — or 420 — is the biggest sales day for cannabis businesses. 

This year could be your year to cash in on this opportunity and build your customer base. To do this, you’ll need cannabis funding to expand your operations. Here’s how to obtain fast financing in time for 4/20.

Having Proper Funding for 4/20 Is Crucial for Cannabis Businesses

No retailer would slack off during the months leading up to Christmas. Similarly, cannabis business owners should gear up for 4/20, the biggest sales day of the year. Cannabis funding can help your business prepare in several ways, including:

  • Keeping up with order demand
  • Having enough inventory and equipment
  • Introducing new products
  • Marketing your business
  • Hiring additional or temporary staff to meet the demand

The sooner you get access to business funding, the sooner you can start preparing for the increased demands of 4/20.

4/20 Cannabis Sales History

Cannabis sales on April 20, 2022, were 148% higher than on any preceding Wednesday, according to the cannabis data company Headset. Cannabis retailers saw a 107% increase in average transaction volume. 

While it’s true that other holidays, including Halloween and New Year’s Eve, see similar spikes in revenue, 4/20 sales remain a high point for the cannabis community.

How to Get Cannabis Funding to Fuel 4/20 Sales

To keep up with the increased demands of 4/20, you’ll need to seek out the right funding opportunities for your cannabis business. 

Understanding Your Funding Needs

First, determine how much funding you’ll need. If you want to purchase new equipment, start by getting a few cost estimates. The same applies to any changes in inventory. These goals will determine the amount of dispensary funding you’ll need leading up to 4/20.

Identify Your Financing Options

Because cannabis is illegal at the federal level, you can’t obtain cannabis financing from banks or traditional lenders. Instead, you’ll want to seek out lenders who specialize in cannabis business funding. You can consider several types of financing, including:

  • Installment loans: Lump-sum payments that you’ll repay with interest
  • Equipment financing: Loans designed to support the purchase of business equipment
  • Working capital loans: Used to fund a business’ day-to-day operations
  • Line of credit: A revolving form of financing that works much like a consumer credit card
  • Invoice factoring: Selling your unpaid invoices to a factoring agency at a discount

Keep in mind that the larger the loan, the more time it can take to get approved. If you want fast business funding, you might consider a working capital loan or opening a business line of credit.

Work with a Cannabis Lender that Offers Fast Funding Opportunities

The best loans come from lenders who specialize in the cannabis industry. The best lenders offer working capital loans, commercial real estate loans and invoice lines of credit for your business. Make sure to compare three different cannabis lenders to ensure you obtain the best rates, terms and selection of cannabis funding options.

Because you’re aiming for funding for a specific time period, check each lender’s turnaround time. Some of the best lenders will offer working capital loans within 24 to 72 hours, so find a lender whose response time aligns with your business goals.

Preparing Your Application

Every lender will have a slightly different application process. You can improve your chances by:

  • Gathering important financial documents such as bank statements and expense reports
  • Updating your business plan
  • Identifying your specific needs and their associated costs
  • Checking your credit report for errors that may lower your score
  • Avoiding other financial decisions, such as opening a credit card, after applying

Following these tips can strengthen your chances of securing a loan and obtaining ideal interest rates and loan terms.

The Funding Timeline

Timing is everything, especially if you’re trying to capitalize on 4/20 sales. But the lending process can vary between lenders and the timeline of lending you receive. 

If you need fast business funding, you’ll need to select a lender and financing option that offer a fast turnaround. This ensures that you receive the loan and can invest in new equipment, inventory or other needs before the 4/20 deadline.

It helps to screen your cannabis lenders carefully. The best lenders can provide cannabis funding in as little as 24 hours, giving you plenty of time to gear up for 4/20.

Mark Your Calendars

April is your time to shine as a cannabis retailer, not unlike the way other industries prepare for Black Friday. This can be a great opportunity to see your sales figures get a much-needed boost and help you connect with your target market and build your brand.

Because many cannabis shoppers prefer to shop in person, this might be a good time to cultivate customer loyalty and develop relationships for years to come. The right funding options can help you market your business and develop solutions that help you on 4/20 and all the days beyond.

Frequently Asked Questions


How quickly can you receive funding once a cannabis business loan is approved?


The turnaround time for a cannabis loan depends on the type of loan you receive and the lender that provides it. The best lenders offer working capital loans in as little as 24 to 72 hours.


Is cannabis the fastest-growing industry in the U.S.?


By many estimates, cannabis is among the fastest-growing industries in the United States. The cannabis industry is expected to reach $31.1 billion by 2024, nearly triple the $12.2 billion in revenue during 2019 ($12.2 billion), according to the Securities and Exchange Commission.


What is the outlook for cannabis in 2023?


Given the impressive growth of the cannabis industry, 2023 promises to be a period of sustained growth, though this growth will be limited to the states in which recreational cannabis is legal.

About Sarah Edwards

Sarah Edwards is a CBD and cannabis writer passionate about empowering people with accurate, engaging and accessible content about both industries. She has nearly a decade of writing experience focused on cannabis and CBD culture, science and business. Her work has been published on Cannanine and The Hemp Haus.