Hemp Business Loans

Financing for all types of hemp industry businesses. Borrow up to $850,000 and get funded in as little as 24 hours.

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Business Loans for the Hemp Industry Explained

What Is A Hemp Business Loan?

Businesses in the hemp industry struggle to secure funding from financial institutions. These financial institutions do not understand the industry or its regulations. For that reason they rarely lend to businesses in the hemp industry.

Some alternative lenders do understand the hemp industry and offer hemp loans. A hemp loan is a financing product created for businesses operating in the hemp industry. These loans make it easier for hemp businesses to qualify for financing.

Who Can Apply for a Hemp Loan?

Businesses that grow, produce or manufacture hemp products are eligible.

Eligible businesses include:

  • Producers of hemp or CBD
  • Retailers of hemp or CBD products
  • Distributors of hemp or CBD products
  • Hemp or CBD sellers
  • Beauty and health products made from hemp or CBD
  • Dispensaries that sell hemp or CBD
  • Marijuana Businesses
  • Cannabis industry businesses
  • CBD extraction laboratories

What Can Hemp Loans Be Used For?

Hemp Equipment Financing

Finance the purchase of specialized hemp processing and farming equipment such as:

  • Hemp Seed Drills & Transplanters
  • Combine and Hemp Harvesters
  • CBD oil extraction machines
  • CBD Beauty and health equipment

Hemp Real Estate Funding

Fund the purchase or lease of land, property and other types of hemp real estate such as:

  • Hemp Greenhouses 
  • Hemp production facilities and buildings
  • Hemp retail store locations
  • Land to grow hemp and CBD crops on

Hemp Working Capital

Pay general day to day business operational expenses such as:

  • Expenses associated with running a hemp business on a day-to-day basis
  • market CBD and hemp industry products
  • Purchase bulk hemp or CBD product inventory
  • pay any related overheads associated with running a hemp business

Hemp Loan Benefits And Drawbacks

Benefits

  • Hemp businesses can apply for funding with less red tape and lending requirements.
  • Hemp lenders understand the hemp industry, which makes them easy to communicate with.
  • A hemp lender will be familiar with the type of hemp equipment, property or land that you need financing for.
  • You don’t need to put up assets of your hemp business as collateral to get a loan.
  • Hemp loans get funded in days, whereas bank loans can take months to fund.

Drawbacks

  • Low credit or no collateral loans may carry higher interest rates. 
  • Compared to banks the interest rates from alternative lenders are usually higher.

Hemp Loan FAQs

Do banks give loans to businesses in the hemp industry?

Hemp businesses can get loans from financial institutions like banks. But, cannabis is a very regulated industry, and banks are reluctant to lend to it.

Is it hard to get a loan for a hemp industry business?

Getting a business loan for the cannabis or hemp industry is difficult. Generally, banks won’t approve cannabis funding since cannabis is a Schedule 1 drug.

Can I get a loan to buy a property for my hemp business?

Yes, you can apply for a loan from any financial institution. However, keep in mind that banks do not usually lend money to businesses that sell illegal drugs. If you want to borrow money, then try to find a private lender who specializes in lending to small businesses.

How do you finance a new hemp business?

Financial institutions will not lend to hemp startups that do not have revenue or a track record. Equity financing is the most common way to get funding for a hemp startup.