The cannabis industry is booming, and by booming, we’re referring to projections indicating a $40 billion market by 2030.

Despite the increasing demand for specialized financing solutions, securing financing remains a substantial challenge for many cannabis businesses. This is mainly due to the complex regulatory environment created by federal restrictions.

This challenge has given rise to specialized cannabis loan companies that understand the unique challenges and opportunities within the industry. These lenders offer tailored financial products designed to address the specific needs of cannabis operations, from working capital loans to equipment financing.

As traditional banks hesitate, innovative cannabis loan companies are stepping up to fuel industry expansion.
Let's explore the landscape of B2B cannabis financing and uncover the top players empowering businesses like yours.

8 Top Cannabis Loan Companies in the USA

We've rounded up seven of the top cannabis loan companies that are making waves in the industry. Each one has its own merits, so let's break them down and see what they're all about.

1. Canntella

Canntella specializes in facilitating financial solutions tailored for B2B cannabis and cannabis-adjacent entrepreneurs.

With a team of financial experts and industry veterans, Canntella understands the unique challenges of the cannabis market. We connect businesses with the right financial partners, offering services that include working capital loans, equipment financing, and expansion financing—designed to help cannabis-based businesses thrive.

Recognized as a leading advisor in the cannabis industry, Canntella provides comprehensive support and guidance to navigate regulatory challenges and achieve sustainable growth by partnering with reputable lenders and financial institutions.

Canntella’s Offerings

Invoice Factoring: Need cash now? We connect you with partners who can convert your outstanding invoices into immediate funds through a rapid assessment process, enabling quick reinvestment in growth.

Equipment Financing: Upgrade your operations without upfront costs by accessing flexible financing solutions for cultivation equipment to retail systems through our network of financial partners.

Revenue-Based Financing: Focus on growth, not fundraising. We help you find capital based on your revenue without diluting equity, allowing you to scale your business while maintaining ownership.

Beyond financial facilitation, Canntella offers a suite of resources designed to enhance your business acumen. From market trend analyzes to networking events with industry leaders, we’re here to support your growth in every aspect.

Ready to elevate your cannabis business with expert financial guidance and connections?

Reach out to Canntella today and discover the right solutions for your growth.

2. FundCanna

FundCanna is another prominent player in the cannabis lending space. It leverages over 20 years of experience funding small and medium-sized businesses across various sectors.

Their deep understanding of the cannabis market allows them to offer tailored financial solutions that address the unique needs and challenges cannabis businesses face.

FundCanna's commitment to the industry is reflected in its ability to provide quick approvals, often within 24 hours, and its focus on transparency and client trust.

Key Offerings:

Equipment Financing: Allows cannabis businesses to purchase or upgrade essential equipment without the burden of upfront costs.

Working Capital Loans: Provides necessary funds for day-to-day operations and immediate business needs.

Invoice Financing: Offers immediate funds based on outstanding invoices, ensuring steady cash flow for businesses.

Pros

• Competitive rates and flexible terms tailored to the cannabis industry.

• Quick approval process, often within 24 hours.

Con

While they offer a broad range of financial products, their focus on specific loan types might not cover every financial need a cannabis business might have​.

3. GoKapital

GoKapital provides financing solutions for cannabis businesses of all sizes. They offer a range of loan products, including short-term loans and lines of credit. Their user-friendly online platform makes the application process quick and easy.

Key Offerings: 

Short-Term Loans: Provides cannabis businesses with access to immediate funds, though potentially at higher interest rates compared to traditional financing.

Lines of Credit: Offers flexible access to capital, allowing businesses to manage cash flow effectively.

Online Platform: Features a user-friendly interface, simplifying the loan application and approval process.

Pros

• User-friendly platform

• Multiple loan options

Con

Higher interest rates compared to some competitors

4. Order.co

Order.co specializes in invoice factoring, providing quick access to cash for cannabis businesses by purchasing outstanding invoices at a discount. This service is particularly valuable for businesses experiencing cash flow challenges and needing immediate liquidity.

Key Offering: 

Invoice Factoring: Allows cannabis businesses to convert outstanding invoices into immediate funds, improving cash flow management.

Pro

Quick access to cash, providing immediate financial relief

Con

Limited to invoice financing, offering less flexibility compared to other financial products​​

5. Loanspark

Loanspark provides a variety of financial products for cannabis businesses, including equipment financing, inventory loans, and working capital loans. They emphasize their commitment to customer service and fast approval times.

Key Offerings: 

Equipment Financing: Supports the purchase or upgrade of essential business equipment.

Inventory Loans: Provides funding to acquire and manage inventory.

Working Capital Loans: Offers financing for day-to-day business operations, ensuring businesses have the liquidity they need.

Pros

• Fast approvals

• Customer service focus

Con

Limited detailed information available on their website, which may require direct contact for specific details on loan terms and conditions​​.

6. Canna Business Resources

Canna Business Resources offers a range of financial services to the cannabis industry, including loan brokerage and consulting. They work with a network of lenders to find the best financing options for their clients.

Key Offering: 

Loan Brokerage: Connects cannabis businesses with a network of potential lenders to find the best financing options.

Consulting Services: Offers expert financial advice and guidance tailored to the cannabis industry's specific needs.

Pros

• Access to multiple lenders

• Personalized consulting services

Con

The potential for additional fees associated with brokerage services, which can add to the overall cost of securing financing​.

7. GUD Capital

GUD Capital provides growth capital to established cannabis businesses. Their focus is on companies with a proven track record and a clear growth strategy, making them a reliable partner for businesses looking to expand.

Key Offering: 

Growth Capital: Provides substantial funding aimed at business expansion for established cannabis companies.

Pros

• Offers substantial capital to support large-scale business expansions

• Focus on established businesses

Con

Higher investment requirements may limit accessibility for smaller or newer businesses​​.

8. Crowdfunding Platforms: A Community-Driven Approach

Crowdfunding platforms like Kickstarter and Indiegogo offer cannabis businesses a unique avenue to raise capital. By presenting compelling business ideas and engaging with potential investors directly, businesses can garner support and secure funding. 

However, crowdfunding campaigns require significant time, effort, and effective communication to succeed.

Pros

• Potential to raise substantial amounts of capital from a large investor base

• Can generate significant buzz and brand awareness

Cons

• Time-consuming and requires substantial effort to execute a successful campaign

• No guarantee of reaching funding goals

• Investors receive equity in the company, diluting ownership

At A Glance: Top Cannabis Loan Companies

|Company Name|Primary Focus|Types of Financial Solutions Offered|Additional Services|Geographic Coverage|Notable Features or USPs
|-------|-------------|---------------------------|-------------------|-------------------|---------------------
|Canntella|B2B Cannabis & Adjacent Businesses|Tailored Financing Solutions (Working Capital, Equipment Financing, etc.)| Industry Insights, Regulatory Navigation , Networking Events|USA & Canada|Deep Industry Expertise, Comprehensive Support, Transparency and Trust |
|FundCanna| B2B Cannabis Businesses| Equipment Financing, Working Capital Loans|Limited|USA|Competitive Rates, Flexible Terms |
|GoKapital|All Sizes (B2B & B2C Cannabis)|Short-Term Loans, Lines of Credit| User-Friendly Online Platform| USA| User-Friendly Platform, Multiple Loan Options |
|Order.co|B2B Cannabis Businesses| Invoice Factoring|Limited|USA|Quick Access to Cash |
|Loanspark|B2B Cannabis Businesses| Equipment Financing, Inventory Loans, Working Capital Loans|Limited|USA|Fast Approvals,Customer Service Focus |
|Canna Business Resources|B2B Cannabis Businesses|Loan Brokerage|Limited|USA|Access to Multiple Lenders |
|GUD Capital|Established B2B Cannabis Businesses|Growth Capital|Limited|USA|Focus on Established Businesses |
|Crowdfunding Platforms(Kickstarter, Indiegogo)|All Sizes (B2B & B2C Cannabis)|Equity Crowdfunding (Investment)|Limited|Varies|Potential for Large Capital Raises

Alternative Financing Options for Cannabis Businesses

While traditional loans are valuable, innovative B2B cannabis entrepreneurs should also consider the following:

1. Angel Investors

Angel investors are high-net-worth individuals who provide financial backing to early-stage startups in exchange for equity or convertible debt.

Within the cannabis industry, these investors often possess a deep passion for the plant and a keen understanding of the market.   

Beyond capital, angel investors bring invaluable expertise and industry connections. Their insights into consumer trends, market dynamics, and regulatory landscapes can be instrumental in a startup's growth. Additionally, their networks can open doors to potential customers, partners, and future investors.

To attract angel investors, cannabis entrepreneurs should actively participate in industry events, conferences, and networking opportunities.

Online platforms like AngelList can also be leveraged to connect with potential investors. Building strong relationships with these individuals is beneficial for securing funding and gaining strategic support.

2. Vendor Financing

Vendor financing offers cannabis businesses an alternative to traditional loans for acquiring essential equipment.

This arrangement involves purchasing equipment directly from suppliers with deferred payment terms. By spreading out the cost over time, businesses can preserve cash flow and allocate funds to other critical areas.

Unlike traditional loans, vendor financing often has less stringent qualification criteria, making it a more accessible option for cannabis companies.

However, it's essential to carefully review the terms and conditions, including interest rates and repayment schedules, to ensure they align with the business's financial goals.

3. Revenue-Based Financing

Revenue-based financing offers a unique funding model for cannabis businesses facing cash flow fluctuations. By tying repayments to a percentage of monthly revenue, this approach aligns the investor's interests with the company's success.

This flexibility is particularly advantageous for businesses operating in an industry with unpredictable sales cycles.

However, you must carefully evaluate the terms of the agreement. Understanding the total repayment amount and ensuring it aligns with revenue projections is essential.

While revenue-based financing can be a valuable tool, it's important to compare it with other funding options to determine the best fit for your business.

With so many options available, how do you choose the right financial partner for your cannabis business? Let's break it down.

9 Tips to Select the Right Cannabis Loan Company

Choosing the ideal financial partner is necessary for your B2B cannabis venture. As the industry evolves, so do the financing needs of businesses. Let's break down the key factors to consider when selecting a cannabis loan company.

1. Industry Expertise

This point is important as cannabis businesses face unique challenges, such as fluctuating market conditions, regulatory hurdles, and complex supply chains. It's important to select lenders who have a deep understanding of these challenges, as this will ensure that they can provide financing solutions tailored to your specific needs.

Look for lenders with a proven track record in the cannabis industry, such as those who have successfully financed similar businesses or sectors within the cannabis space​​

2. Range of Financial Products

The inclusion of diverse financial products is essential, but it’s also important to mention that these products should align with the specific growth stages of your business. 

Whether you need equipment financing, working capital, or revenue-based loans, the lender should offer a range of options to meet your evolving needs as your business grows. This adaptability is key to long-term success​.

3. Compliance Knowledge

The cannabis industry is heavily regulated. Your lender should possess in-depth knowledge of state and local compliance requirements. They should be able to structure loan terms that align with regulatory restrictions, such as limitations on loan proceeds or collateral types.

4. Reputation and Track Record

Trustworthiness is non-negotiable. A lender’s history of supporting cannabis businesses should include evidence of successful partnerships, such as positive case studies or testimonials. This helps ensure that they have the experience necessary to handle the complexities of cannabis financing​.

5. Transparent Pricing

Hidden fees and complex terms can erode profitability. Seek lenders that provide clear and competitive pricing structures. This includes upfront disclosure of interest rates, origination fees, and repayment terms.

For instance, some lenders offer bundled packages that include financial consulting or industry networking, which can add value beyond the loan itself.

6. Efficient Processes

In this fast-paced industry, timely access to capital can make a significant difference. Evaluate lenders based on their application, approval, and funding processes.

Digital platforms and automation can streamline these steps. For example, lenders using advanced analytics can accelerate loan approvals by assessing risk more efficiently.

7. Value-Added Services

Lenders that offer additional support, such as industry insights, educational resources, and networking opportunities, can be invaluable. This not only helps in navigating the complexities of the industry but also contributes to the overall growth of your business​.

8. Geographic Expertise

A local lender may offer advantages in understanding regional regulations and market dynamics. However, a national lender can provide scalability as your business expands. For example, a multi-state operator might prefer a lender with a national footprint to support operations in different jurisdictions.

9. Scalability

Partner with a lender who can support your business as it expands and evolves, offering solutions that grow with you.

As you evaluate potential financial partners, consider how they align with these key factors. The right cannabis loan company should not only provide capital but also serve as a valuable resource in navigating the complexities of the industry.

The Future of Cannabis Financing

One thing is clear: the cannabis industry is evolving rapidly, and so are its financial needs.

With an anticipated Compound Annual Growth Rate (CAGR) of 2.89% from 2024 to 2029, the market is projected to reach a substantial US$49.56 billion by 2029. 

This growth trajectory is fueled by factors such as increasing legalization, evolving consumer preferences, and technological advancements.

One can map the growth of the cannabis industry also through the following trends:

• Investment: The industry has attracted significant investment, including from traditional financial institutions.

• Consumer Demographics: While usage has spanned across age groups, the core consumer base tends to be younger adults.

• Product Diversity: The market has expanded beyond flowers to include edibles, concentrates, vapes, and topicals.

• Retail Landscape: Both standalone dispensaries and cannabis retail within other businesses (e.g., liquor stores) have emerged.

But what does this mean for your business?

It means opportunities are growing, but so is the complexity of choosing the right financial partner. 

At Canntella, we're committed to being that kind of partner. We understand that your success is our success, and we're dedicated to growing alongside you in this exciting industry.

As you move forward in your search for the perfect cannabis financing solution, we invite you to consider Canntella. Our team of experts is ready to provide you with tailored financial solutions, industry insights, and the support you need to thrive in the cannabis sector.

Fuel Your Cannabis Business Growth: Apply For Financing With Canntella Today

FAQs

Who regulates cannabis in the US?

Cannabis regulation in the U.S. is a complex issue due to the conflict between federal and state laws.

• Federal Level: The Drug Enforcement Administration (DEA) classifies cannabis as a Schedule I substance, meaning it has a high potential for abuse and no accepted medical use. This places strict restrictions on its cultivation, distribution, and possession.

• State Level: Many states have legalized cannabis for medical or recreational use, establishing their own regulatory frameworks. These state-level agencies oversee licensing, cultivation, production, distribution, and retail operations.

Can cannabis companies use credit cards?

Traditionally, it has been difficult for cannabis companies to use credit cards due to federal banking regulations. This is because cannabis remains a Schedule I substance under federal law, making it risky for financial institutions to process transactions related to the industry.

However, some progress has been made with the passage of the Secure Banking Act, which encourages banks to provide services to legitimate cannabis businesses. As a result, a growing number of credit card processors are now working with cannabis companies, though challenges persist.

What banks are cannabis friendly in the US?

Identifying banks that are "cannabis-friendly" can be challenging due to the evolving regulatory landscape. While some banks have shown a willingness to work with cannabis businesses, you should research and find a financial institution that aligns with your specific needs and location. 

It's recommended that you contact local banks or credit unions directly to inquire about their policies regarding cannabis businesses. Additionally, you can contact Canntella to access a host of financial services and support networks.

What is a California Cannabis Equity Program?

California's Cannabis Equity Program is designed to assist individuals from communities disproportionately impacted by cannabis prohibition. The program aims to create opportunities for those affected by the war on drugs to participate in the legal cannabis industry. This includes providing resources for business ownership, licensing, and job training.

The program focuses on social equity and economic empowerment within the cannabis market.