The cannabis industry on Thursday hosted the new cannabis-focused loan company FundCanna launched, co-founded by financial services veteran Adam Stettner.
FundCanna said it providing the burgeoning marijuana industry with a well-funded platform for growers, producers, retailers and all participants in the cannabis supply chain.
The initial products will be look like factoring offers, often seen in the apparel and retail industries, offering term loans of 30 to 180 days. The San Diego, Calif., Based company said its offerings will be flexible and highly customizable.
Beyond the initial increase of $ 30 million, FundCanna said it has access to additional capital through its executives, investors and partners, including an extensive nationwide network built over the past 20 years and over funding US small businesses.
Stettner, with his team of leaders in the financial services industry, brings over two decades of lending experience, facilitating over $ 20 billion in financing on all types of credit, including business, personal and student loans.
âThe cannabis industry is in a fast and dynamic phase requiring significant sources of working capital and growth that were not available to it until now. This lack of debt financing has hampered growth and pushed up borrowing costs, âsaid Stettner, co-founder and CEO of FundCanna, in a statement.
âIt’s common for there to be a gap between the need to make payment and the time to turn purchases into income. FundCanna will fill this gap and provide access to working capital for the licensed cannabis industry.
Solve the debt deficit
While growing rapidly, and now in over 35 states, the cannabis industry still faces a massive shortage of debt financing from traditional bank and non-bank lenders. Today, the limited debt financing available to the industry is generated by high-cost sources of capital, including sale and leasebacks, non-conforming asset-based loans and other forms of debt capital. which are more expensive than the solutions available to regulated sectors.
“FundCanna is here to solve the cannabis industry’s debt deficit“said Stettner.