Infuse Your Business with the Power of a Cannabis Term Loan
- Flexible access to capital with fixed payments for long term and short term loans.
- Borrow a set amount for a defined period and make monthly payments providing certainty for budgeting.
- Get approved quickly with minimal paperwork and fast funding timelines.
Take advantage of an 85% approval rate - act now!
What is a Cannabis Term Loan?
A cannabis term loan is a type of financing designed specifically for businesses operating in the marijuana industry. It provides a lump sum of capital that borrowers repay over a set period, typically ranging from one to five years, with regular payments at a fixed interest rate. The word “term” in “term loan” refers to the predetermined repayment period or the loan’s maturity date.
Cannabis entrepreneurs often use the funds from a term loan to finance specific, one-time investments for their businesses, such as purchasing equipment, expanding facilities, or acquiring real estate. These loans are an attractive option for many cannabis companies due to their lower interest rates and the ability to spread the cost of capital over a longer period.
Additionally, term loans are popular among cannabis businesses looking to refinance high-interest debt, as they can help improve cash flow and reduce overall borrowing costs. To qualify for a cannabis term loan, borrowers typically need to meet minimum requirements for credit scores and debt coverage service ratios.
At Upwise Capital, we specialize in securing term loans for cannabis businesses that meet these criteria. Our experienced team works closely with clients to identify their unique financing needs and develop tailored solutions to help them achieve their goals. By choosing a cannabis term loan from Upwise Capital, borrowers can access the funds they need to grow and thrive in this dynamic industry.
Cannabis Term Loan Details
10% - 25%
1 - 7 Years
As Fast As 48 Hours
$150K - $20M
Cannabis Term Loan Pros vs Cons
PROS
Monthly Repayment Terms
Lower Interest Rates
Suitable for a wide range of business purposes
CONS
Higher Rates for Lower Credit Scores
Must have 1+ Years in Business
Must Be Profitable or Demonstrate a Path to Profitability
How does a Cannabis Term Loan work?
Most marijuana business owners have heard, that the cannabis industry has funding options and term loans are one of the best products for cannabis businesses, that want to expand. This type of cannabis business funding provides the cash a medical marijuana or a legalized recreational cannabis business owner needs to go to the next level. Funds from a cannabis business term loan can be used in a multitude of ways to help cannabis business owners grow.
Term loans are viable options for an established cannabis related business that is showing a profit on their most recent business tax return. No two cannabis businesses are alike and all cannabis business owners have specific capital needs. Upwise Capital’s funding specialists will be able to qualify your cannabis business for term loans very quickly. Â
As with any term business loan here, your use of funds and credit history are the most important aspects during the underwriting process. Businesses in the marijuana industry need to make sure their use of proceeds makes sense prior to applying for term financing options. We ask our clients to list out a breakdown, dollar for dollar on what specifically the funds will be used for before applying to financial institutions. If your a cannabis company and want to speak with one of our cannabis business funding specialists regarding your business financing needs, please call 77-55-UPWISE.
Who Qualifies for a Cannabis Term Loan?
Securing cannabis business financing is no easy task and requires more paperwork than some other financing options.
So how can you get one?
Plenty of cannabis related businesses can qualify for cannabis industry term loans—as long as you’ve been in business for a bit, have a good credit score, and are reporting a profit on your most recent years’ business tax return. Â
(See more on a term loan’s minimum qualifications below.)
However, not all business term loans are the same: the length of the term, the interest rate, and the maximum loan amount will depend on your business revenues and credit profile. Â
Typically, most term loan banks or a cannabis lender will lend up to 30% of gross annual sales reported on the most recent business tax return with no collateral attached to the loan. In order to increase the loan amount, you can add collateral such as commercial real estate, equipment, inventory, and other assets to the loan. Â
Since cannabis industry term loans have longer repayment periods than say a merchant cash advance, your business’s financials, and credit score are more important.
Depending on your cannabis related businesses growth and any equipment purchases, financing needs, business operations, cash flow, personal and business credit score, revenue, EBITDA, net profit, DCSR, cash flow, and more, there are plenty of different term loans available on the Upwise Marketplace.
In fact, Upwise will assist you in securing business term loans with lengths and payment structures as varied as 1 year with bi-weekly payments to 5 years with monthly payments – and everything in between.
Cannabis Term Loan Requirements
Profit Show on Tax Returns
over 620+
over $200K
1+ Years
* Note: These term loan requirements are based on previous Upwise customers and is just an average.
Root Your Cannabis Business in Success: Plant the Seeds of Growth with a Term Loan
What does a Term Loan cost?
Before applying, you should know how much financing will cost you, no matter what type of financing you’re applying for.
Terms Loans are easy to figure out and calculate the amortization schedule and tend to be one of the most affordable options available.
Let’s take a look at a cost example.
Example of a Business Term Loan
Let’s say you’ve qualified for a business term loan.
In this business term loan offer, you’re borrowing $25K from a funder at a 12% interest rate and a 5-year term.
Given the longer length of that traditional term loan, you’ll most likely have a monthly payment of about $556. (Term loans can come with weekly and bi-weekly payments, too.)
That’s a predictable expense you can easily understand and plan your financials around.
Small business term loans, like other business loans, can also come with fees attached to the loan. These fees could be origination fees, underwriting fees, prepayment fees, and other fees.
Make a WISE choice with Upwise and don’t overlook fees on your loan offer with other loan brokers. Be sure to factor in any and all small fees associated with your Term Loan in order to understand the true cost of your loan. Upwise will make sure all fees are transparent and thoroughly explained prior to proceeding with a Term Loan.   Â
Breaking Down Each Term Loan Payment
Here’s the thing with business term loans: not every payment goes toward the same thing. There is a specific amortization schedule for each term loan, with a certain portion of each payment going towards interest and principal. Â
Traditional term loans amortize, which means you don’t pay equal parts interest and principal (or the amount you borrowed) from month to month. Instead, funders usually stack interest payments early on and leave your principal payments for later on in the life of your small business term loan.
That way, even if you pay your loan off early and get the rest of the interest forgiven, you’ve still paid most of it to the funder. Make sure to ask for an amortization schedule, so you know when is the best time to pay this loan. This means that you might save less than you’d think by paying your term loan off towards the end of the loans maturity. Most term loan funders do not have a penalty for early payoff and some Term funders offer a pre-payment discount.
However, your monthly payment is still the same amount—it’s just the proportion of interest to principal that changes.
In order to understand your Term Loan completely, make sure to ask Upwise for an amortization schedule or call our Term Loan Team at (646) 837-5522.
Apply for a Cannabis Term Loan Now.
- Pursue new opportunities, upgrade operations, support inventory or boost marketing efforts.
- Apply today to unlock capital that supports your goals without restrictions.
- Fuel your cannabis business growth with flexible, long-term funding tailored to your unique needs.
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
We understand that time is money, and that’s why a business term loan is one of the best cannabis business loans out there. It’s designed to get you the financing you need in just a matter of days, so you can focus on what really matters – growing your business and serving your customers.
Imagine having the financial freedom to expand your operations, upgrade your equipment, or seize that exciting new opportunity that’s been on your mind. With a cannabis term loan, you can make it happen faster than you ever thought possible.
So why wait? If you’re ready to take your marijuana industry business to the next level, now’s the perfect time to apply for a term loan. Our friendly team is here to guide you through the process and answer any questions you may have. Let’s work together to unlock the full potential of your business and make your dreams a reality. Apply now and discover the power of a cannabis term loan!
Uses for a Cannabis Term Loan
- Expansion and growth: Fund the opening of new locations, expand cultivation facilities, or enter new markets to increase your customer base and revenue streams.
- Equipment upgrades: Purchase state-of-the-art cultivation, processing, or manufacturing equipment to improve efficiency, quality, and output, ultimately reducing costs and increasing profitability.
- Inventory management: Stock up on high-quality cannabis products, including flower, edibles, concentrates, and accessories, to meet customer demand and avoid supply shortages.
- Marketing and advertising: Launch targeted marketing campaigns to attract new customers, build brand awareness, and differentiate your business in a competitive market.
- Hiring and training: Recruit and train top talent to ensure exceptional customer service, compliance with regulations, and smooth business operations.
- Technology and software: Implement advanced POS systems, inventory management software, or data analytics tools to streamline processes, improve decision-making, and enhance the customer experience.
- Licensing and compliance: Cover the costs of obtaining or renewing necessary licenses, permits, and certifications required to operate a cannabis business legally and maintain compliance with evolving regulations.
- Research and development: Allocate funds for product development, testing, and innovation to stay ahead of industry trends, improve product quality, and meet evolving consumer preferences.
Benefits of a Cannabis Term Loan
Predictable repayment terms: Cannabis term loans offer fixed interest rates and consistent monthly payments over a set period, allowing you to budget effectively and plan for the future with confidence. This predictability helps you manage your cash flow, allocate resources efficiently, and make informed financial decisions for your cannabis business.
Larger funding amounts: Compared to other financing options, such as credit cards or lines of credit, cannabis term loans typically provide access to larger funding amounts. This enables you to tackle more significant investments, such as expanding your cultivation facility, purchasing cutting-edge equipment, or acquiring a new property, which can accelerate your business growth and help you achieve your long-term goals.
Builds business credit: Responsibly managing a cannabis term loan and making timely payments can help establish and strengthen your business credit profile. As you demonstrate your ability to handle debt and meet your financial obligations, you may qualify for better loan terms, lower interest rates, and increased borrowing capacity in the future. A strong credit profile can also open doors to new business opportunities and partnerships, further fueling your success in the cannabis industry.
A Cannabis Term Loan
Why Choose a Cannabis Term Loan?
At Upwise Capital, we understand the unique challenges and opportunities faced by cannabis entrepreneurs. That’s why we’ve designed our cannabis term loans to provide the financial support and flexibility you need to thrive in this dynamic industry. With our streamlined application process, competitive rates, and personalized service, we make it easy for you to access the funds you need to grow your business.
Whether you’re looking to expand your operations, invest in new equipment, or seize a promising opportunity, our team of cannabis financing experts is here to help. We take the time to understand your goals and tailor our lending solutions to fit your specific needs. By choosing a cannabis term loan from Upwise Capital, you’re partnering with a lender who is committed to your success and shares your passion for the industry. Let us help you unlock the full potential of your cannabis business – apply for a term loan today and experience the Upwise difference.
Fuel Your Business Growth with Our Cannabis Financing Solutions
When applying for a cannabis loan, most cannabis companies feel their cannabis loan options can be limited, because of federal regulations, traditional bank loans and obtaining a bank account are even difficult. For a cannabis dispensary or new cannabis business, traditional financing options from traditional banks such as an asset based loan, invoice financing, working capital loans, real estate loans are almost near impossible to get since cannabis remains illegal at the federal level.
This is why Upwise Capital has created the best cannabis funding options for your marijuana business or cannabis dispensary. We can even help you obtain a bank account with FDIC banks (federal deposit insurance corporation) or credit unions, a real estate loan, cash advance, line of credit or help prepare any due diligence for a cannabis lender.
Why Upwise for a Cannabis Term Loan
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.
