If you are considering applying for a cannabis business loan, it is probably because you have seen the great success that comes with the business. But that success is dependant on knowing what you are doing. And running a cannabis business is not as easy as you might think it is. If you are planning on starting you own cannabis business there are a few things that you need to know about before applying. If you are looking to get a cannabis business loan, then we are going to give you some tips and advice and what you should be prepared to show when applying for the cannabis business loan.
What is the first thing I need
When creating a business the first thing you are going to need is an idea. But with that idea comes a more in-depth plan. You should create a business plan that is solid and good. You do not want to end up getting into something that you have no idea of what to do. When you are creating a plan try and visualize what the next 10 years this business will look like. Try and project what your financials will look like.
- Create a work plan- You are going to want to create a solid work plan. It should be about a 5 step plan including
1 Create your vision and goal- you are going to want to define what your business is going to be. Be sure that it is a strong and solid vision and goal.
2. Selecting the right property- Start looking for where you are going to operate your business the best idea is to make sure that you feel good about the place and that it fits with you. Do not rush in the process. Having the right space that you feel comfortable about is extremely important.
3. Create operations and standards- This is going to be where you plan how your business operates and the morals that your business holds. A good successful business always has good morals.
4.Financial and tax compliance- Make sure that you are financially prepared to take this task on and are able to pay the taxes that are required, you do not want to fall back on your taxes that can cause a lot of other mess in the future.
5. Crate work plan- This is where you will create your work plan and include all of this in it.
- Prepare site- This is where you will want to get all your documents together and start looking at the places that could possibly be your future site.
- Creating your business plan- Regulators are going to want to see some type of healthy business plan. You’re going to want to create a lasting vision that screams success Otherwise your chances of getting approved could be significantly less. Some of the basics of a good business plan include
Financial projections- Having goals of what you want financially is important. You want to ensure that you are doing everything you can to make the most money.
Safety and security- You want to ensure that your work environment is safe and has the right amount of security. Most dispensaries are required to have some sort of security.
Licenses- You need to know what licenses are required and how long they all are active for be renewing them. You cannot let your licenses expire as that can get your business shut down and get you possibly fined a lot of money.
- Obtain state approvals- Now that you have everything it is time for you to obtain state approvals this is the licensing part. You are probably going to be subjected to a background check.
- Apply for cannabis loan- You can now officially apply for a cannabis business loan. So now that you are ready here are a couple of things that you are going to definitely need.
- Licenses- You are going to need official proof that the state has granted you access to be able to operate a cannabis business.
- Credit check- You are going to need to have a healthy credit score as well as a report. Lenders are going to most likely look into your credit reports. If you have anything on there that could bring your score up we definitely recommend that you take care of that first.
- Finances- Banks and lenders are going to want to see that you have money coming in. We recommend that you take at least six months worth of bank statements and any other financial statements that you have. You need about 30k in asset for banks to feel comfortable lending to you.
- Business plan- Banks and lenders are going to want to see that business plan that you drew up. So make sure that you bring it with you.
We hope these tips will help you and we wish you much success in your business.