CBD Business Inventory Financing

Do you sell a physical product with sales over $150,000?

When you go to the store or shop online for your favorite CBD products, whether they are CBD edibles, oils, or even CBD chewables for your dog, you may not realize all the different types of businesses that help bring CBD products to market. From growers and producers to distributors and retailers, there are many moving parts that go into creating the products that you see on a regular basis. Additionally, there are numerous businesses that in some way or another are dependent on CBD.

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1000+

Deals Funded

$200M+

In Inventory Funding

99.5%

Funding Success

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$2,500,000
$2500000
$0$20000000

Why choose Kickfurther for CBD Inventory Financing?

Don’t pay until
you sell.


Your payment obligation only begins once your sales are made. This alleviates the cash-flow pinch that lenders cause without customized repayment schedules. Free up capital to invest in scaling your business without impeding your ability to maintain inventory

30% cheaper
funding.


Know your rates. When you compare ours, you’ll often see that you’re saving. We cost less than factoring, PO financing, and many lenders. We also have higher limits than competitors.

Fund up to $1 million
in an hour.


Once approved and the deal goes live, most deals fund within a day (often within minutes to hours), so you’ll never miss another growth opportunity.

It’s easy, it works, &
it grows with you.


Companies access higher funding limits and often get lower rates as they return to Kickfurther, creating a scalable solution that grows alongside your company.

“Tough Times Call For Creative Funding — Check Out
Kickfurther’s Clever Model”

Join 800+ Kickfurther success stories

CBD Inventory Financing Options

CBD Financing

The CBD market is anticipated to grow by 29.91-billion USD from 2020 to 2025 alone. In 2021 alone, the CBD industry grew worldwide by 26.21%. This is where CBD financing comes into play. CBD financing is typical of other forms of business financing, however, since the cultivation, distribution, and sale of all marijuana-related products is still federally prohibited, most traditional lenders are unable to fund CBD businesses. Because of this, people who are looking to start up a CBD-related business have had to get creative with their funding options. Some businesses have found that private funding through investors is one good way of dealing with the lack of traditional finance options for a new CBD startup. Others have found that there is actually a private lending market out there that caters to CBD and marijuana-related businesses. If you begin researching the types of lenders available on this private lending market, you may realize that many lenders have chosen a specific niche of the CBD market with whom they work directly. Some lenders could focus solely on growing and cultivation operations while others may focus on the production of CBD edibles, vape cartridges, concentrate, topical creams, canine chewable treats,  and other CBD products. It is important to do your research on each specific lender to ensure your business model will fall within their scope. 

Aside from private investors and alternative marijuana industry lenders, there are some other types of financing where the type of business you operate is not a concern of the lender. These can include financing options like merchant cash advances, bridge loans, equipment loans, invoice factoring, invoice financing, and personal loans. Each one of these options has its own advantages and disadvantages and some may be better suited for your business model than others. It is up to you to do your research to ensure you are choosing the finance options that can put you and your business in the best position for success. 

How does CBD financing work?

Depending on what kind of CBD financing you obtain, the process could be different for different types of financing. For example, an equipment loan can give you the funding you need to purchase a machine that fills glass bottles with CBD oil. The machine is then used as collateral to secure the loan, and if you should happen to default, the lender can come in and sell the machine in an attempt to recover the original debt. On the other hand, a CBD retailer may be able to secure a merchant cash advance to create some working capital by promising a certain percentage of all credit card transactions until the debt is paid. Inventory financing may also be a good option for a new CBD business. Inventory financing is credit that is extended to a business to pay for the manufacture of a product(s), and by using the inventory as collateral, the business owner can secure the loan. Again, the way CBD financing works is entirely dependent on the type of financing. 

Most common expenses associated with a CBD business

The types of expenses associated with running a CBD business vary by the type of business. However, many of the same expenses you would have as a business that sells any other type of product do apply. Those expenses may include the following.

  • Commerce website development 
  • Inventory purchases 
  • Product and packaging design 
  • Branding
  • Marketing, 
  • Product storage
  • Order processing software and systems 
  • Product handling and shipping 
  • Labor
  • Taxes 
  • Rent
  • Utilities 
  • Insurance
  • and many more expenses …

If you also have a retail location or your facility doubles as both a distribution center and a retail business, then you may find even more expenses. The retail business may need:

  • Shop decor
  • Building improvements and/or remodeling
  • POS system
  • Rent
  • Utilities
  • Labor/Sales staff

Can I get CBD financing for my business?

Yes, there are many options available to someone who is looking to get financing for their CBD business. A good place to start would be to look into private lenders who specialize in providing financial services to businesses in the marijuana and CBD industry. Since traditional lenders are mostly barred from providing financing to CBD businesses, private lenders have stepped up to fill the void. Aside from working with a private lender, you can explore several other options that can provide financing for your business. CBD business owners can turn to the world’s first online inventory funding platform, Kickfurther, to access funds they are unable to acquire through traditional sources. In short, Kickfurther can pay your manufacturer to produce inventory while allowing you to create customized repayment schedules. 

Types of CBD financing & loan options

Here is a quick list of some CBD financing and loan options available to a new or established CBD business. 

  • Business loans: Although traditional banks and lenders cannot offer business loans to CBD businesses, alternative lenders can and are willing. 
  • Working capital: Bridge loans are short-term loans designed to help businesses increase their working capital to pay employees, rent, utilities, and other monthly expenses. 
  • Equipment loan: If you need a large piece of equipment to manufacture or produce your CBD product, you can use the equipment as collateral to secure the funding to pay for it. 
  • Merchant cash advance: If you have a CBD retail business, you can get an advance on your expected monthly sales. These advance-style loans typically come with high-interest rates, however. 
  • Inventory funding: Inventory funding can allow you to get the inventory you need without interrupting cash flow. Some banks can offer inventory financing, but it can be expensive. For a cheaper alternative turn to an online inventory funding platform such as Kickfurther and start buying inventory on consignment today.

Is it difficult to get financing for a CBD-based business?

Due to the federal prohibition on the growing, cultivation, manufacturing, and sale of all marijuana-derived products, including CBD, it is nearly impossible to secure financing through a traditional bank or lending institution. However, there are plenty of private alternative lenders available as well as other forms of general business financing that are not entirely concerned with the nature of your business. Only that you are able to pay.

Challenges CBD businesses may face

There are many challenges that CBD businesses face that may discourage someone from wanting to enter the industry. The number one challenge is the law and how it is always changing. You may want to have a good business lawyer on retainer while you navigate this ever-changing legal landscape. Other challenges include limited financing options, credit card companies not wanting to complete transactions, slow and expensive licensing, and a highly-competitive marketplace. 

What credit score do I need to qualify for CBD financing?

Credit score minimum requirements for CBD financing vary by lender and the type of financing being pursued, however, if you have a credit score of 680 or above, you are sitting in a decent position for qualifying. Anything above a 700 is even better. 

What do I need to qualify for CBD financing?

In order to qualify for CBD financing you should have a good to exceptional credit history, a demonstrated and successful business model, and a strong revenue stream. 

How inventory financing with Kickfurther can help a CBD business grow

CBD businesses may struggle to secure legitimate financing. Retail CBD shops in particular usually need financing to be successful. At Kickfurther, CBD businesses can access our funding marketing place to secure inventory funding. Kickfurther is up to 30% cheaper than other options and allows borrowers to create their own customized repayment schedule. 

So how does it work? 

Visit Kickfurther and create a free business account. Next, complete the online application and review a potential deal with one of our account representatives. Once approved, our community of backers fund most deals within a day, often within minutes to hours.

Discover unlimited funding at one cost. . . apply for inventory funding on Kickfurther today!

How does CBD Financing Work?

Connect with consumers across the United States to get your
inventory funded via our marketplace

Create your online account

Create a business account, upload your business information, and launch your deal

Get funded within minutes to hours

Once approved, our community funds most deals within a day, often within minutes to hours, so you’ll never miss another growth opportunity.

Control your payment schedule

We pay your manufacturer to produce inventory. Make the introduction and you’re off and running! Outline your expected sales periods for customized payment terms. At the end of each sales period, submit sales reports and pay consignment profit to backers for each item sold.

Complete and repeat!

Complete your payment schedule and you’re done! Often once the community knows you, you’re likely to get lower rates on your next raise.

Other Industries

We fund inventory for direct-to-

consumer & major store brands

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FAQs

How does CBD financing work with Kickfurther?

Brands can access funding for new inventory (or can get reimbursed for recently produced goods) from marketplace participants. The marketplace allows brands to access private funding at costs that can improve with each use. Your CBD funding goes directly to your manufacturer for production of goods and you make no payments until you receive and begin selling new inventory.

What is required to get funding with Kickfurther?

You must sell a physical product to get funded on Kickfurther. Your business must be compliant with State and Federal regulations and have an established track record of sales. Kickfurther is for inventory financing so you must have a physical product. Finally, all businesses are subject to approval by the Kickfurther quality team.

How can I create a Kickfurther co-op to use for CBD?

  • Launching a Co-Op involves 3 key steps:
    • Create a basic profile including information about your business and product line. Once you’ve done this you can go live with an “upcoming Co-Op” profile that users can choose to follow to hear when your Co-Op launches.
  • Determine your Co-Op structure using the Kickfurther calculator to determine costs, earnings, and timeline.
  • Verify your Credibility Metrics with the Kickfurther team and finalize your Co-Op profile.

How fast will I get funded?

Once approved and the deal goes live, most deals fund within a day (often within minutes to hours), so you’ll never miss another growth opportunity.