Getting A Startup Loan

Getting Financing for Your Marijuana Business

If you’re either just getting started, need funding to launch or marijuana business or already have a running business but need additional funding, you may have run into some issues finding financing. If you’ve tried getting funding from a major bank or credit union, you were probably shot down pretty quickly. That’s because most traditional banks won’t give out business loans to dispensaries or businesses that have any direct link to marijuana.

Use this form to Apply For Cannabis Merchant Services online

In the United States, it is still considered a federal violation to sell or grow marijuana; therefore, the FDIC won’t insure banks who lend to MMJ businesses. This creates more problems and higher risk for banks and, while the marijuana business has been exploding in recent years, it’s still such a small percentage of businesses.

The risk is simply not worth the reward for larger banks that lend to every other industry.

So, to get financing for a marijuana business in states where it’s legal, dispensaries should be seeking out private banks or financial institutions. According to, the marijuana industry in the United States will grow to $7.1 billion in 2016, a 26% increase from the previous year. That’s huge. Thanks to the enormous growth of the industry, many private lenders have sprung up to fill the gap left by the traditional banks.

Private Loans for MMJ Businesses

Finding the right private loan for your marijuana business can be tricky, though. Since the supply is low (it’s not easy finding funding for dispensaries), many of the private lenders take advantage of the situation, ripping off these marijuana businesses with abandon. Notorious for hidden fees and high interest rates, many of the private lenders take advantage of marijuana dispensaries, forcing them out of business.

You might ask, though, how is the industry growing so rapidly if no one can get funding? Well, thankfully, there are options available for you if you are vigilant. The best route you can take is to seek out private lenders who work specifically with marijuana businesses. You should also make sure they don’t have hidden fees or high interest rates that could greatly hinder your business from being profitable.

No Bank Are Lending To Marijuana Companies

Currently there are no banks lending to MMJ businesses. The only type of loan you can get is a loan shark which are hard to find and come with 20-30% interest or worse.


If you are in need a private loan for your dispensary between $5,000 and $150,000 you could qualify for credit financing instead with no interest for the first year. To learn more about how to apply for the the credit financing loan, click here.