Cannabis Line of Credit
- Flexible access to funds when needed, with interest payments only on the amount drawn.
- Acts as a safety net for emergencies or opportunities, with no obligation to use it.
- Cost-effective financing by paying only for the borrowed amount, saving on interest.
Take advantage of an 85% approval rate - act now!
What is a Cannabis Line of Credit?
Introducing our cannabis line of credit: Gain access to a pool of funds specifically tailored for your cannabis business with our line of credit (C-LOC). As a business owner in the cannabis industry, having the capital in your back pocket when you need it is crucial. Our C-LOC provides you with the flexibility to borrow up to a predetermined amount, typically ranging from $50,000 to $500,000, and you only repay the amount you withdraw, along with interest. This enables you to effectively manage cash flow gaps, acquire additional working capital, meet payroll, purchase inventory or materials, and seize unexpected opportunities.
Wondering if a C-LOC is the right choice for your business?
Our product is designed to cater to cannabis companies who value flexibility and the ability to access funds as needed. Upwise offers both secured and unsecured lines of credit. Unsecured lines of credit are not tied to any specific assets, while secured lines of credit are backed by assets such as accounts receivables, invoices, equipment, or commercial real estate.
To help you make an informed decision about whether a cannabis line of credit is the ideal financing solution for your small business, we will guide you through how it works, the associated costs, the requirements to obtain a line of credit, the permissible use of proceeds, and the application process. We understand the unique needs of the cannabis industry and are here to assist you in securing the funding you require.
Line of Credit Details
1.24 - 1.36
12 Months or Less
As Fast As 48 Hours
$25K - $10M
C-LOC Pros vs Cons
PROS
Only Pay Interest on the Funds you Draw
Flexible Capital is Available Whenever you need it
Save on Interest by Paying Back Early
CONS
May Require Updated Documents Before Each Draw
Can Require Collateral or Personal Guarantee
May Have Short Term Repayments
How does a Cannabis Line of Credit work?
What exactly does it entail?
In simple terms, this type of business financing provides you with access to a predetermined amount of capital, determined by a credit limit. This means that whenever your cannabis business requires funds, you can draw from this established pool of capital. It’s like having immediate access to the funds you need, right at your fingertips. Here’s how it works:
To begin, log into your dedicated portal assigned to your small business line of credit. From there, you can effortlessly click and draw funds whenever necessary. It’s a hassle-free process that puts you in control of your cash flow.
The unique advantage for a marijuana business on a C-LOC is that you only incur payments and interest charges when you actually tap into the funds and utilize them. You pay only for the amount you borrow, and interest is accrued solely during the period of fund utilization. Moreover, should you choose to repay the borrowed capital ahead of schedule, you can enjoy significant savings through early pre-payment discounts on interest.
Business lines of credit can be secured, meaning they are backed by collateral such as inventory or accounts receivable. Alternatively, they can be unsecured, relying solely on your personal guarantee. In certain cases, the line of credit funder may file a UCC (Uniform Commercial Code) against your business while you are utilizing the funds. To discover how to obtain these types of cannabis business loans, read on below.
Our goal is to provide you with the necessary information and guidance to secure the financing your cannabis business requires.
An Example of a Cannabis Line of Credit
Say you’re advanced $100K with a factor rate of 1.24 over 12 months:
$100K multiplied by the 1.24-factor rate is $124,000, which is what you’ll need to repay over the 12-month term to maturity. Now this calculates to a 1.02 factor rate per month that the money is being used by the merchant.  Â
Most of Upwise Capital’s cannabis business loan funders will offer a pre-payment discount and only charge fees while the funds are drawn or being used by the cannabis related business owner.
Here’s an example of a Pre- Payment Discount on a $100k C-LOC, 12-month, 1.24 Factor Rate:
Month 1 = 1.02 = $102,000
Month 2 = 1.04 = $104,000
Month 3 = 1.06 = $106,000
Month 4 = 1.08 = $108,000
Month 5 = 1.10 = $110,000
Month 6 = 1.12 = $112,000
Month 7 = 1.14 = $114,000
Month 8 = 1.16 = $116,000
Month 9 = 1.18 = $118,000
Month 10 = 1.20 = $120,000
Month 11 = 1.22 = $122,000
Month 12 = 1.24 = $124,000 Total Payback to MaturityÂ
Who Qualifies for a Cannabis Line of Credit?
Before granting the line of credit to an applicant, a bank or online lender first considers the applicant’s ability to repay and service the debt. They look at the credit score, financial stability, job, and income of the borrower.
For businesses, they will look at the bank statements, financials and tax returns.
Businesses with a steady income, that have been in operation for at least 6 months can qualify.
Cannabis Line of Credit Requirements
positive payments
over 500+
over $175K
6+ Months
* Note: These line of credit requirements are based on previous Upwise customers and is just an average.
Open the Door to Financial Freedom: Access a Business Line of Credit.
What truly set Mike apart was his honesty. He reviewed multiple lender options with me in a fair, transparent way, walking me through the pros and cons of each and helping me understand every angle. He encouraged me to move forward only with what felt right for my business, never once making me feel pressured to choose him or Upwise. That level of professionalism is rare.
Mike also worked hard to build genuine personal rapport — something no other representative I spoke with did. He took the time to understand my business, explored different paths, and made sure I felt confident and comfortable throughout the decision-making process.
The follow-up from Mike and every member of his team has been above and beyond anything I’ve experienced with other lenders. Every interaction feels thoughtful, client-focused, supportive and most important- genuine. I’m incredibly grateful for the experience and would confidently recommend Mike to anyone looking for a knowledgeable, ethical, and truly client-first lending partner.
Update: Leo contacted me, and after basically insulting me concerning their prior behavior, I decided to let them run my application. After being ghosted for the day, they finally came back and denied due to another loan my business was involved in. These people get their feelings hurt way to easy to be in this business. I would not recommend this company to anyone.
Upwise
What does a Cannabis Line of Credit cost?
Cannabis lines of credit are a flexible, fast, and convenient injection of capital into the business. This is unsecured non dilutive capital helping to preserve equity in the business. The reason these products are so popular is due to the easy access to capital compared to a traditional bank loan process, which is long and tedious. Most banks will still not lend to cannabis companies or ancillary companies that derive the majority of their revenue from plant-touching companies, so unsecured line of credit funders provide a quick and painless solution. Cannabis related business owners can access capital when they need it for an opportunity or emergency. Having access to a C-LOC helps business owners sleep better at night. Â
How do you know whether a line of credit will make sense for your cannabis related business?
If you were denied a bank loan due to selling products or services in the cannabis industry, it is also likely due to your credit rating, time in business, or cashflow. As you may have discovered, it can be difficult to find financing solutions – even if you have a stellar credit score and solid business. After all, cannabis is still illegal on the federal level, so even where state law permits the cultivation and sales of marijuana, traditional banks are shying away from the sector. However, you may have better luck with a line of credit for your business. Even if you have only been in business for 6 months or have bad credit, some line of credit funders have more lenient eligibility requirements.Â
On the one hand, a C-LOC may seem expensive to you as a borrower. You’ll generally qualify for more competitive terms on a cannabis business line of credit if you have a higher credit score, long time in business, and show profitability. Online lenders typically tend to charge higher rates on cannabis financing than cannabis banks. Â
Only Pay On What You Draw
On the other, a C-LOC offers flexibility. The borrower only has to pay interest on funds that have been drawn from the line of credit. Having access to funds gives flexibility as a business owner.   Â
There are other reasons why some borrowers might want to opt for a C-LOC rather than a more traditional business loan.
For one, cannabis line of credits come unsecured—meaning you don’t have to offer a valuable piece of collateral or equity in the business in exchange for the financing. This can be a benefit for business owners who don’t want to put something like their Real Estate, personal home, or other financial assets at risk.
And finally, cannabis line of credits are quick. Need cash this week? A C-LOC can probably be approved and funded before then.
Apply for a Cannabis Loan Now.
- Pursue new opportunities, upgrade operations, support inventory or boost marketing efforts.
- Apply today to unlock working capital that supports your goals without restrictions
- Close the cash flow gap within your cannabis company or bridge the financing divide between your short-term and long-term goals.
Stay ahead of the curve - get access today!
Documents You'll Need to Apply
Driver’s License
Voided Business Check
Business Bank Statements (Last 4 Months)
Credit Score
You may also be requested to provide the following for larger dollar amounts over $100K:
Balance Sheet
Profit & Loss Statements
Business Tax Returns
Personal Tax Returns
As the cannabis industry continues to evolve alongside changing state laws permitting medical or recreational use, marijuana businesses face unique challenges securing funding from traditional sources due to federal prohibition and concerns around cash-related businesses. At Upwise, we understand the specialized needs of the cannabis market and are pioneering new financing solutions to fuel your growth. Our cannabis loans, like revolving lines of credit and equipment financing, provide the capital needed to purchase new equipment, upgrade facilities, enter new markets, or cover bridge loans while awaiting licensing approval.
Credit unions and private investors partner with us to conduct rigorous due diligence on each client’s cannabis products, business plan, and real estate loans before approving competitive funding for expansions, inventory, and other core operational expenses. Whether you cultivate, process or distribute medical marijuana, CBD products or recreational cannabis, we are committed to working with equipment manufacturers and the industry to ensure cannabis entrepreneurs have access to compliant business funding and purchasing power. Contact us to learn how our specialized marijuana business loans can help scale your operations and provide the financial freedom to realize your full potential in this evolving industry.
Uses for a Cannabis Line of Credit
There are several compelling reasons why choosing a cannabis line of credit is a wise decision for your business. Firstly, a cannabis line of credit offers unparalleled flexibility, allowing you to access funds whenever the need arises. This means you can effectively manage cash flow gaps, seize opportunities, and address unexpected expenses without delay. Additionally, unlike a traditional business loan, you only repay and incur interest on the amount you actually withdraw, providing greater control over your finances and potentially saving you money.
Choose the Option that Best Suits Your Needs
Moreover, with the option of secured or unsecured lines of credit, you can select the arrangement that best suits your business’s unique circumstances and risk tolerance. Whether you need to leverage specific assets or prefer a personal guarantee, a cannabis line of credit can accommodate your preferences. Lastly, by partnering with a reputable provider like us, you gain access to specialized expertise and tailored solutions designed specifically for the cannabis industry, ensuring that your financing needs are met with precision and efficiency. Choose a cannabis line of credit to unlock the financial flexibility and support your business deserves.
Benefits of a Cannabis LOC
Most traditional business loans and funding options are loans tailored towards meeting specific business needs.
Flexibility
A credit line allows a borrower to request any amount of money but ultimately it’s the lenders who make the final decision. The credit limit however represents funds available to the borrower. The borrower doesn’t have to use it all and the credit limit does not influence the interest rate.
A borrower can tailor the amount spent and repayment according to their needs and capacity. Revolving lines also give business bank account the borrower some more risk averse level of control over how much interest the loan incurs.
Revenue Based
With this product, the contract is structured as a purchase and sale of future receivables. Your cannabis business has the flexibility of cash that is available to draw in exchange for a percentage of your future monthly revenue.
Secured or unsecured
A revolving credit account can be secured by collateral or unsecured. The collateral for a secured C-LOC can be a tangible asset, like a house or car. Alternatively, you can agree to the use of a blanket UCC lien.
Collaterals minimize the lender’s risks and that makes interest rates on secured revolving credit accounts much lower than those traditional lenders get on unsecured credit accounts. If you want to borrow a lot of money, unsecured loans are exactly the best way to go.
A Cannabis Line of Credit
Why Choose a Cannabis LOC?
When seeking financing options for your growing cannabis company, it’s important to understand the differences between a revolving line of credit versus a non-revolving line. A revolving line, also called a credit line, allows you to borrow amounts up to a predefined maximum as needed. As you make payments, the available credit becomes available to borrow again (revolves). This provides flexibility to access cash when business needs arise. In contrast, a non-revolving line of credit is for a fixed amount that must be paid down over time through set payments. Any amounts paid cannot be re-borrowed. While a non-revolving option may have a lower interest rate, a revolving line gives cannabis business owners the fluidity needed to take advantage of new opportunities and scale operations in this rapidly changing industry.
Fuel Your Business Growth with Our Cannabis Financing Solutions
As the federal government continues to navigate the evolving landscape surrounding cannabis, businesses face challenges such as money laundering concerns and limited access to traditional funding sources. Our cannabis industry line of credit bridges that gap by providing a reliable and compliant avenue for private investors in securing financing to support the growth of cannabis businesses in a regulated manner. Despite federal prohibition, our line of credit offers competitive interest rates, empowering entrepreneurs to expand their purchasing power and capitalize on emerging opportunities within state law boundaries.
With increased access to capital, businesses can fuel their direct cannabis sales, growth, enter new markets, and navigate complex compliance requirements with confidence. We prioritize due diligence to ensure the legitimacy and sustainability of our clients’ operations while empowering them to thrive in the ever-evolving cannabis industry. Discover how our C-LOC can help you unlock more financial potential and propel your business forward.
Why Upwise for a Cannabis Line of Credit
Quick & easy application
Our simple 15-minute application gets you on your way to funding quickly. Most applicants receive a fast decision within hours of applying. Then just choose your loan terms and you could have funds deposited into your account as soon as 24 hours.
Ensure you make the wise choice
Every Upwise applicant gets a dedicated funding advisor who takes the time to understand your business and it's unique needs. We are here for your support throughout the entire funding process.
Access multiple financing options
Upwise has an extensive product suite and a network of 100+ lenders. This means you're more likely to find the best match for your funding needs.
