As the CBD Oil extraction business continues to gain popularity, a lot of existing firms are now working on obtaining their spot on the marketplace. For every cannabis manufacturer, one of the most crucial steps is to invest in highly specialized extraction equipment (have a look) which can cost a fortune.
No matter what stage your company is in, top-of-the-line extraction equipment is a very wise investment. However, extraction equipment can expensive, highly specialized. On top of that, iterations of the technology are introduced rapidly.
Financing, in this case, becomes an evident struggle as it has to come on par with modern equipment and technology, and it is not too soon before these companies realize how difficult it is to access the traditional debt markets, if not impossible.
Optimal Partner for Specialty Financing
To tackle this problem, Cannabis firms rely on non-bank specialty finance firms. These firms offer financial structures and mechanisms and mainly target those businesses that have trouble entering the markets. Here are key factors to look for in a specialty finance firm:
⦁ In-House Origination and Underwriting
These firms are made for a faster and more fluid movement when it comes to structuring a finance program. They underwrite in-house and do not require outside committee approval, and most of all they are capable of giving individualized and unique structures for the business.
⦁ Independent Equipment Manufacturers
Since business firms tend to stray from one type of machinery, special finance partners being the equipment producers is not ideal. It is best t choose an independent firm that offers a wide range of technological options for the business.
⦁ Equipment Agnostic
Clients must not be forced to use only one type of technology or CND Oil extraction process. With that in mind, the ideal financiers should have agnostic views while tackling these issues. They should be able to create solutions that are in line with the client’s business models and specifics.
⦁ Technological Expertise Throughout the Life Cycle
Make sure to find a financier with expertise in Cannabis oil extraction with the ability to give doable and effective counsel on the lifecycle right from the start.
⦁ Term Optionality
Customers would differ in terms of need. It is also crucial for the financer to have a wide range of programs. They should be able to offer leasing, trade-in, refurbishing, and the like.
⦁ Experienced Management
Reputation will determine whether a financier is trustworthy or not. Of course, with the sky-high risks, businesses wouldn’t rely on financiers with little to no experience. Thus it is ideal to partner up with a firm that has a solid reputation.
⦁ Affiliated Best-in-Class Advisory Services
The best finance partners offer more than financing technology. They also on-site training, off-site diagnostics, comprehensive support systems, and operating procedures.
With specialty financing, cannabis firms are introduced to a wide array of global investment opportunities aimed at exponential growth. This is a transformative system that allows easy state transportation with great margins and operating leverage. A win-win for both investors and clients.