It is estimated 90% of the financing currently going towards the Cannabis industry in the U.S., is coming from private firms. Banks account for the other 10% that are extending loans, but they are doing so on a very limited basis with only long-term, established clients. With federal legalization on the horizon, this will all change. But this could still take years. In the meantime, private lenders have filled the void left by banks, but with more expensive loans. While more expensive, private lenders provide a source for Cannabis companies to access growth capital. There is an ever growing demand for capital for Cannabis companies for equipment, real estate and working capital. For the near future, private firms and alternative lenders will continue to be the go-to source for capital these emerging companies require. See https://www.smbclending.com/ for more information.
