Even with the advent of COVID-19, the cannabis industry in the US is still thriving. One of the hottest business opportunities in the past two decades, cannabis for either medical or recreational use continues to grow at a considerable rate. That is why you see so many cannabis startup loans as more people are jumping into this industry.
Admittedly, regulations in certain states along with federal law when it comes to the distribution of cannabis products still presents challenges. But the demand for such products which range from medical to recreational use, especially cannabidiol or CBD which does not contain THC, is such that more lenders are now working with cannabis startups.
What makes the industry so enticing for so many is that from cultivation to distribution, cannabis has proven to be highly profitable in all areas of the country. From dispensaries both urban and rural, cultivators, and infused product companies are over 90% profitable according to the latest information. That is why is you have probably seen dispensaries popping up even in small towns.
Dispensaries, which is arguably the most visible representation of the cannabis industry, is quite successful. Roughly 40% earn profits that exceed $500,000 per year. Even the low-end dispensaries which are mostly located in small, rural towns can garner from $100,000 to $250,000 in profits. Because the products themselves can be sold at a respectable margin and the demand is growing, more dispensaries are going to be created across the US.
With profit levels continuing to rise, although with the current pandemic there is a temporary slowdown, the cannabis industry at all levels continues to be one of the most profitable. The trick for those who want to take advantage and get into growing, cultivating, or selling cannabis products is having the capital to set up their business. That is where getting cannabis business loans Oklahoma or whatever state you live in is a necessary step.
Getting a Cannabis Business Loan
You will probably find that most, if not all banks are uninterested in lending money to cannabis-based businesses. This is because while the state may have fully legalized the industry, the same cannot be said of the federal government. Banks that have federal protection also tend to follow federal law, which is why you will have to go elsewhere to find cannabis business loans Illinois or other states that have legalized the cannabis industry in some manner.
When searching online for a lending company that helps cannabis businesses get started, you should look for one that works with several lenders. This is because when you have several lenders competing for your business, you can get the most favorable rates.
If you are looking to get cannabis loans California, Illinois, or other states that allow for the growth, cultivation, or sales of cannabis products, then you need to find the right lending resource. Our company works with some of the best cannabis lenders in the industry. That way, we can find you the right loan for your needs