How to industry sign banking north dakota month to month lease
[Music] hi everybody welcome to our broadcast today today we're gonna talk about sky-high cannabis funding I want to thank everybody for being here today my name is Steve y Baum the director of business development here at credit suite and you wouldn't learn a lot together ty crandall normally would be doing this yeah unfortunately was unavailable today he asked me to fill in so uh we're gonna learn a lot together let's dive right in like I said ty Crandall normally be doing this and ty as you guys all know is the author of business credit decoded huh and he's the CEO here at credit suite if you ever have any questions need any more information you're certainly welcome to reach out to us at info at credit suite com that's info at credit suite com or you can reach out to us at eight seven seven six zero zero two four eight seven so today we're gonna learn about how to get funding for the cannabis industry we're gonna find out about a four trustworthy proven lenders which welcome cannabis based businesses and we'll loan you money just why the rapid changes in the legal status of cannabis can make it hard to get financing and we're gonna find out how the si see in the NIACC Morenci eight between medical marijuana and the sales of recreational cannabis but also how the evolution in the laws means the s IC and the NAICS codes still don't seem to be settled for the cannabis industry they're kind of confused on where they're going so we think there's going to be a big change here and the reasons beyond marijuana being controlled substance for the cannabis industry to be seen as a high-risk industry and those of you who follow us know that high-risk industries it's very difficult to get funding we're gonna find out how where you could turn to get cash for your marijuana business and how unsecured business financing can be literally the best place to get the funding you need including details of qualifications how much you can get and more we're gonna give you the names of four rock-solid lenders with programs welcoming entrepreneurs in the cannabis industry as we said the beginning and we're gonna include details on their requirements the terms the rates and more we're also going to find out where peer to peer lending fits in this whole thing and how you can get funding through that type of platform and it just--how equipment leasing in real estate lending of all things can be ways to get funding for your marijuana business so let's go ahead and dive right in okay so so recreational marijuana legality as you're all aware I'm sure recently tennis has become legal in several states and the numbers certainly going to be expected to grow and I kind of feel like this is going to become a national referendum at some point I'm in my 50s they've been talking about this as I was in my late teens and early 20s so certainly it's no surprise that this is happening but it's moving pretty rapid in 2012 Colorado Washington approved that don't use recreational marijuana measures in other words not medicinal but just recreational again Colorado and Washington approved that in 2012 she doesn't 14 Alaska Oregon DC did exactly the same thing so now you can be in Colorado in Washington State at Alaska we're gonna in DC and buy marijuana recreationally and it's not illegal in 2016 California Maine although they haven't approved retail so they disapprove until 2018 Massachusetts Nevada did the same thing Arizona voted no I suspect that will probably change in the near future in 2018 Michigan and Vermont via the legislative process rather than a ballot initiative like the others what I mean by ballot initiative is the voters voted on it as opposed to a Michigan in Vermont where the legislation actually passed the law did the same thing so that's one two three four five six seven eight nine ten eleven or ten states and obviously DC is not a state that have legalized marijuana that's twenty percent of the country have legalized recreational use of marijuana so obviously it's going to be a booming business so if you want to check this out you can just go to the link that we show up here and CSL org research civil and criminal justice marijuana overview dot aspx so let's talk about recreational marijuana legality 2018 the following ditional States considered ballot initiatives and when I say ballot issues that means that they're gonna allow the voters to decide if they want recreational marijuana to be legal in their state Connecticut Delaware Georgia and Hawaii that's for more in addition you of Kansas Kentucky Maryland Mississippi New Hampshire New Jersey New York Pennsylvania Rhode Island South Carolina now look at this this is just building up now think about all the business opportunities here Wisconsin and West Virginia so there's a notion another 8 12 16 18 so that's literally double the number of are actually over double the number of states that have it that are expected to approve the recreational marijuana use so in 2018 the following states voted on measures which can propose a constitutional initiative or other voter approved for adult legal use of marijuana but none of these measures actually pass so these are states that actually did get it on the ballot but they just didn't pass those three now study bills were filed in these states in other words what they mean by study bills the bills that were studying what would happen with the usage of recreational marijuana now think about that there's three there's six more oh they passed in those three states so these measures were enacted established commissions to study the legalization in other words what what happened well we're having an effect criminality wouldn't it would it effect job loss would it effect would to be higher DUIs all the things that was necessary for the legislation to make a decision as to whether or not to pass the legalization of marijuana and obviously they're looking at regulation and taxation of marijuana and that's a big deal in 2018 repeal bills bills were voted on in Washington in Massachusetts Massachusetts repeal bill is still pending Washington did not pass which we did not expect now 96 California was the actual the first state to legalize the use of cannabis for medicinal purposes I bet you guys didn't know this was going to be a history lesson since then there have been 33 states plus Guam Puerto Rico and DC have all proved comprehensive public medical marijuana cannabis programs so 33 states plus those three areas Guam Puerto Rico DC have approved medical marijuana as opposed to to recreational marijuana so you have 33 states where marijuana can be sold medicinally and then an additional it looks like 20 to 30 states will have it approved for recreation that's a big market and obviously with a big market big opportunities with big opportunities people want to jump into this business and certainly one of the things they're going to need is to figure out how to get financing for that so in another 13 states the government allow the use of low THC high cata CBD oil basically I don't want to say it a product from for medical reasons in limited situations or as a legal defense those states are Alabama Georgia Indiana Iowa Kentucky Mississippi North Carolina South Carolina Tennessee Texas Virginia Wisconsin Wyoming so there's another eleven twelve thirteen fourteen that are allowed CBD oil now it's still illegal in some places you have to be very careful three states do not allow the use of cannabis under any circumstances gonna be Idaho Nebraska and the first offense only is decriminalized in other words in Nebraska if you're caught your first offense no problem second offense its criminalized and then the third state will be South Dakota so they're the only three states in the entire country that don't allow some form of cannabis use whether recreational and/or medicinal so that leaves 48 states plus DC as opportunities to have a business to sell marijuana in some form or fashion here's the problem cannabis is considered a high-risk industry now we're gonna dive into why it's considered a high-risk industry but rest assured it is a considered a high-risk industry this may be due to it being medicinal in many states so so pharmaceuticals will be considered high-risk and it's also due to continually evolving evolving laws so because the banking industry is national state laws although it may be decriminalized in your state maybe the banks don't recognize that because their headquarters in a state where it is against the law and the difference would be how would you differentiate between those three or between those two plus the still control substance in many states that we said Industries could also be designated as high-risk at their business deal with a lot of cash transactions you can imagine in this industry there are a ton of cash transactions cash transactions are high-risk for for a few reasons one of them being it's really easy to launder money so for example if you're in the gambling business that's considered a high-risk industry now there's lots of other high-risk industries but these are severely high-risk these are automatic denial industries so let's talk about the SSE and NAICS codes that the cannabis industry possibly have because they still haven't quite nailed a damn according to Hoover's the marijuana industry is coded as follows si si code five nine nine nine so if you're registering your business that might be the si si code you pick or NAICS code four five three 998 now the NAICS keeps this color on it's high-risk list you have to keep that in mind when going for funding you're going to be pegged as high-risk immediately now si si code comm disagrees a little bit they say kind of since she should be coded this way si si code five nine one two and NAICS code four four six one one zero the NAICS keeps this code again on it's high risk industry these codes seem to be for medical marijuana sales not necessarily non-medical sales and that's where running into issues there's a link governing comdata safety justice state marijuana laws map medical recreational so you can check out where it's medical where you have medical marijuana approval and recreational approval so the question is does the si si called marijuana sales medical or not high-risk the industry is so new the si see the literally doesn't know what to do so they haven't really weighed in on it yet everyone's kind of waiting around to see what happens when the si si si code weighs in so keep in mind conventional Mac's are not a good place to look for loans for high-risk industries so if you're in this industry or you're thinking about getting in this street you're going to be pegged as high-risk immediately it doesn't matter whether you're a recreational or medicinal you will be considered high-risk over eighty nine percent of business applications are denied by the big banks normally so high-risk industries are subject to even stricter underwriting guidelines guidelines which means you can't get any money from traditional lenders there's just no way they're gonna lend you money from it again h4 additional bank for restricted industries the decline is literally automatic you're gonna make an application you're gonna put it in that particular si C code or NAICS code you're gonna get an automatic denial they're not going to review they're not going to send it into underwriting it's an automatic denial you have to keep that in mind when thinking about getting into this business however there are a lot of loans businesses in high-risk industries can get and when we talk about high risk industries we actually have a list through our program that shows high-risk industries high risk doesn't mean you won't be able to get a loan it just means that traditionally the larger banks the big banks will turn you down but there is plenty of secondary market money out there for high-risk industries they're usually not coming from banks you can get it access twenty-five fifty thousand even over a hundred thousand initial funding I'm talking about initial funding you're just starting your business there are lenders who will give you over a hundred thousand dollars in initial funding eaving even in a high-risk industry peer-to-peer lending is another viable option peer-to-peer lending you'll apply and your peers are funding your business so it's unsecured business financing unsecured business financing is a program that we here at credit suite also have where you can get up to $150,000 in unsecured financing typically at 0% interest from 6 to 18 months even as long as 24 months and it's revolving so as you pay it back it's available to you again so that's something that certainly works really well in the cannabis industry let's talk about unsecured business financing with you BA if you work with finance or specialize in unsecured credit lines very rare it's very little known about the program the fuel lending sources offer unfortunately we do you can get five to eight times your Curt high-limit credit card here's what I mean by that do you have a credit card in your name that's $20,000 you can typically get this says five to eight times I've seen three to eight times they're gonna look at your particular situation and your current income and by the way it is stated income and they're gonna get you an approval based on that the individual approvals individual approvals and I'm talking about individuals if you weren't a business applying run from two to 50,000 actually I've seen them as high as 175,000 unsecured business financing a 0% financing like I said for 6 to 18 months reports to the business credit reporting agencies in most cases and multiple lines create help to get limit increases in more trade lines there's what I mean by that you could approve four five five lines at 20,000 each and you use it for six months you should immediately go back and ask for an increase if you've paid it well you've paid it off every month however you're paying it if you've been handling that credit the right way they will every time increase your limit very quickly and unlike personal credit business credit lines we could increase significantly faster and significantly larger so unsecured business financing is a great way even if you only get the fifty to a hundred thousand to start it doesn't mean you won't have a hundred to two hundred thousand within six months to a year something to keep in mind and again keep in mind this is revolving so something that you hang on to it doesn't go away when you pay it back it's not gone you have access to it again again you get approvals up to a hundred and fifty thousand I've actually seen up to 175 but typically 150s the max we'll see the average that I see is between fifty and a hundred now it is based on your FICO score you're gonna be a 685 go score and here's what I mean by that all of your credit scores all three reports should show a 680 or higher so typically that means around a 700 but the good news is guarantee ORS are welcome so if I wanted to start a business and my credit score was only 620 and I had an opportunity to go into the medical marijuana business and/or the recreational marijuana business and I needed a hundred thousand my credit squirrel let's say wasn't good enough however a friend or a family member had 700 plus they believed in my dream they believed in me they loved my business plan they are more than welcome to personally guarantee that and the business can still get the funding so they'll guarantee it but it still goes in the business name you didn't need 30% or less utilization on your current credit cards or whoever the guarantor is and you need to have six increase or fewer in the last six months and I'll be out looking for credit having a credit pull constantly and then come down this road you want to take a look at my bridge and go to identity identity IQ or IQ identity IQ or experiment also has a way to crit to check your credit report and just see how many inquiries on there in the last six months sorry about that technical difficulties commercial mortgage consultant this is one of our vendors we're going to talk about today that will fund medical marijuana and own recreational marijuana industries I hope there's a high risk program they have specifically for that you can go
to commercial MTG bankers dot-com we're going to give you their underwriting criteria here in a second again commercial mortgage Consultants Inc high risk program for medical and recreational marijuana companies commercial MTG bankers dot-com here's the requirements that they're looking for you need a license to operate so in other words if you've opened your medical marijuana business obviously need to have a license to operate and that's in all states there's no state that I know of where you can be in the cannabis industry and not have a license from the state to operate you need a business bank can with at least $10,000 in monthly deposits so in other words your business is open you're doing at least $10,000 in monthly deposits and you have your license to operate you cannot go negative in your bank account more than five times in a month so so what they're saying is if your if your bank is overdrawn fifty one hundred even a thousand dollars that's okay as long as doesn't happen more than five times in a particular month there's other parameters underwriting considers including but are not limited to credit and cash flow so they're also going to look at your personal credit and they're going to look at your cash flow if you're putting $10,000 a month in monthly deposits and your overhead is 20,000 that's very difficult that's that's real low cash flow they want to see that you're gonna have the funds to pay this loan back but the good news is they have this program specifically for medical and recreational marijuana companies again commercial mortgage bankers our mortgage consultants excuse me incorporated you want to go commercial MTG bankers dot-com I'll leave it up here a second saying but he wants to write it down or copy it down commercial and T G bankers calm now keep in mind don't miss what says here you need a business bank account not your personal bank account a business bank account okay they're also going to look at location time and business so they want to make sure you're in an area that makes sense not a high risk and they also wanna make sure that you've been in business a decent amount of time and there's they didn't really give us a minimum but they just want to make sure you're not start-up and you're closing tomorrow all right usually they fund the twenty five percent of your average gross deposits to start so if you're doing that $10,000 typically they'll give you a 25 hour $100 loan which doesn't seem like a lot however the good news is as you build your relationship that'll increase it so as the relationship with your client grew up with them grows they will keep continuing to increase your credit line so remember 25% of your average grows to positive start and then they'll increase as your business increases they funded a medical marijuana company one hundred fifty thousand dollars over four months in 2018 CMC's in Colorado has been in business for three years alright so let's talk about gut Capital gut Capital is a commercial loan broker and those of you have been founders have heard this particular company in the past they do private loans rates are from between 8 and 25 percent they'll give you one to three year terms so gut capital there commercial loan broker private loans eight to 25 percent one to three year terms they'll fund you seven to 14 days so very quick funding they also do real estate loans now that's a private loan they'll also do real estate loans eight to twenty percent one to five year terms and funding is thirty to sixty eight so let's lay this down in the example you have a building you're gonna be opening your medical marijuana business in this building you own this building there's someone in your family owns the building or some of your partner owns this building instead of borrowing money for the medical marijuana business you could borrow money against the property with a one to five year term they'll fund you in 30 to 60 days is between 80 to % it's a great way to get started off capital now they'll also do equipment leasing the same thing rates between 20% they'll give you 1 to 7 year terms so the terms are a little bit longer they'll fund you in 5 to 14 days I'm gonna say equipment leasing if you have any type of high end equipment they'll they'll buy or release that equipment back to you they'll also give you cash advances factor rates of one point three to one point four nine so it's basically cash flow financing they'll give you four to twelve months terms they will renew these so you can borrow the money and then renew it after your term is up they'll fund you in one to two days this is probably the easiest funding there is it's strictly based on cash flow you can go to gut capital com forward slash cannabis - business - loans that's dispensary - financing - and - marijuana - industry - investment and I will absolutely leave that up on the screen if you want to write that down good capital comm and you may want to just want to go to good capital comm and you can search from there again good capital comm gu DC AP IT al.com alright let's move on okay diamond business loans this is the third of our four vendors that we're going to talk about diamond business loans is a direct lender so where we were talking about brokers part of this these are direct lenders and they offer a couple of things that would absolutely work for you one is obviously the unsecured line of credit and they'll give you term loans look if you equipment leasing and financing so that's three different loans they're offering again as a direct lender they serve established and startup cannabis businesses so if you're established no problem if your startup which is where most people run into an issue this is the company you want to reach out to diamond business loans let's talk about what they'll give you they'll give you loans from from 25 to 150 thousand these are cash loans or lines of credit so it could be a one-year term it's five point nine percent plus so depends on your credit they'll give you a five-year term at nineteen point nine nine percent plus so obviously the longer term the higher interest rate if you're in that industry and you're expecting to have high cash flow in other words you're expecting to hit the ground running you might just want the one-year term get off the ground pay the loan back quickly and let the business fund itself after that or find another vehicle that you can use to finance it when I mean another vehicle you might want to get a longer term loan you might want to get a cash flow finding it you might want to get unsecured business financing so this is a great loan for a startup and the startup knows based on their business plan and their research their market research that the cash flow is going to be very high they'll also give you lines of credit zero to nine point nine nine percent that's tremendous a line of credit zero of nine point nine you pay as you draw now diamond their requirements are going to be no collateral how cool is that right no time in business requirement gets even cooler six eighty plus FICO so again a 685 cone what they mean by that is you're gonna have a FICO score of over 680 so you're looking for around 700 no late payments or bankruptcies you want to go to Diamond be Elcom I'll keep that up for a second it's diamond dia M o n D isn't David BL com that's diamond business loans again no collateral no time in business requirement 685 Co no late payments or bankruptcies if you're a startup this is a great way to go this is one of two really outstanding ways to go I still love the unsecured business financing because it's revolving and the the criteria to get the UVF is a little easier than here but this is certainly a great option for you if you're a startup business Ok Go capital the fourth of our four that we were going to talk about some work a place to connect borrowers with lenders this is peer-to-peer lending this is one things we talked about in the beginning there also a direct lender so you gotta be borrowing directly from go go capital and they also combine two types of funding so in other words you can go to go cap and all they'll fund you and use two different vehicles to get you the funding they serve industries like medical cannabis I thought there was another piece of that guys oh there you go they'll give you business cash advances they'll give you a merchant cash advances and they'll give you between ten and ten thousand dollars and five million so certainly that's a big window depending on the size of your business I would look at them as a start-up as well no problem or if you've been in business a while and just look into advance or two to expand certainly go capital someone you're gonna want to look at here's the good news 24-hour turnaround you apply for them they approve you 24-hour turnaround here's what they're gonna require from you then require ten thousand dollars an average monthly revenue so that means you need be an established business you have to have a this back in not a personal pan account you're gonna be four plus months of business bank account statements and fewer than seven days with a negative balance per month so this is the primary criteria that go capital's gonna want to look at before they decide to have funds you and you can go to go capital that's G o K AP ITA Elcom 4 slash business - loans that's a landing I'll leave that up for a second for you again now keep in mind if you have any questions on this or you need a little more information you can always go to credit suite comm forward slash get funding we have not only access to all of this but even more of other options that may work for you in your cannabis business again credit suite com forward slash get funding or if you have any questions just go to info at credit suite com shooter an email and somebody will reply back to you anyone from our finance team or one of our business credit analyst or or advisors we'd be happy to get that information out to you all right so let's recap and this was a really quick one typically these last an hour but I was learning right along with you guys so it's not easy to get funding for the high risk cannabis industry we know that obviously it's a high risk industry it doesn't mean it's impossible it doesn't mean you should give up if this is the dream and you have a great business plan and this is exactly what you want to do certainly opportunities are sky high had I thought about it maybe there's something I would have gotten into it's not gonna be easy to get funding but it doesn't mean you can't get the funding traditional bank stores are literally close to you so I don't care how much money you're putting through your bank at let's say one of the big ones Bank of America Wells Fargo they're still not gonna look you as a viable lending opportunity unsecured business financing will work perfectly for you that's the the UBF program that we talked about where you need a 680 credit score they don't verify your income you can get someone to co-sign for you and these are revolving lines of credit in other words as you pay it off it's still available to you and they'll even increase those credit lines as time goes on it's just request increases remember that's the 680 credit score or higher peer-to-peer lending obviously works as well you got to do some creative searching to find lenders for your business so even though we're doing this YouTube blog today and we're teaching you a little bit about cannabis funding for a cannabis industry certainly do your research go to Google it's easy to look at just search cannabis business funding and you'll find even more but these were the top four the ones we found were the most successful in funding the cannabis industry and certainly we have other options like I said if you go to credits recom forward-slash get funding you will find many more options here so you can easily and quickly get financing get access to every legitimate funding program all in one place that's kind of our little pitch at the end you pay us no fees ever on the way if you send your request for funding into us we have the resources to get you what you need and we don't charge a penny for all we do ever you can use our loan volume to get lower rates of fees so you can go directly to a lender and let's say you got a 14% you may find you get it from the same lender with us at 12% because of our volume keep in mind we're doing hundreds and hundreds of loans every single week we probably get a thousand applications a week here so give us call or come to credit go to credit suite comm forward slash get funding our business blueprint if you follow our business blueprint you can graduate this to an SBA loan never have to look for funding again again credit suite comm forward slash get funding if you need to contact us for more information its eight seven seven six zero zero two four eighty seven that's eight seven seven six zero zero two four eight seven you can also go to info at credit suite comm and I apologize guys this is typically a one-hour broadcast and for some how I got finished in an hour and a half I was learning right along with you I loved it I hope you got a lot of others today again if you have any questions you can certainly go to info like recom or reach out to us eight seven seven six zero zero two four eight seven or go to our website at credit suite comm all the information you need is right there I'm really thankful to have you guys on there hope you all have a great day bye bye
