As the cannabis industry continues to see explosive growth, more and more big-name lenders and investors are jumping on board. From cannabis investments to partnerships to funding, the business world of cannabis is expanding in droves. 

Cannabis financing is a game-changer for the cannabis industry, as well as for financiers. The industry consistently grows 30 to 40% annually, making it one of the most rapidly growing industries. For investors, this is a powerful, untapped opportunity.

Debt Financing to Cannabis Companies

This past April, cannabis fintech lender Bespoke Financial began a partnership with the cannabis industry’s top financial platform, PayQwick. This collaboration makes PayQwick the very first fintech lender to offer debt financing to cannabis companies. 

Through this partnership, cannabis businesses will enjoy a streamlined process. They will be able to access services from both Bespoke and PayQwick, including products, electronic bill pay, invoicing, wire transfers, armored car cash pick up, and more. This is a huge step for the cannabis industry, which has long been missing out on the basic financial services that other industries experience.

Beyond these financial services, the inclusion of Bespoke in the partnership opens new opportunities for cannabis businesses. Never before have cannabis businesses had the ability to obtain lending services. This is huge for these businesses that typically start small without much capital. 

In fact, not having access to traditional lending has been a huge barrier for the cannabis industry. With the Bespoke-PayQwick partnership, clients will now be able to qualify for Bespoke lines of credit. Qualification and lending will depend on the due-diligence process currently used by those in the cannabis industry. For the time being, the partnership will benefit PayQwick users with cannabis businesses in Arizona, California, Colorado, Florida, Illinois, Massachusetts, Michigan, Oregon, and Washington.

Massive Funding for Cannabis Tech Platform

In July, cannabis technology platform, Alleaves, finalized acquiring $40 million in funding for their multistate rollout. Funding comes from a massive investment group that funds private and public markets. The investment group, The Eleven Fund, is paving the way for the cannabis industry, which has experienced intense growth challenges.

The Alleaves tech platform is a comprehensive seed-to-sale program. It can also combine with a company’s current system to offer reports and analytics. 

With this funding, Alleaves will be able to obtain any other cannabis tech platforms. Acquiring these platforms will enable them to craft a fully complete real-time transaction and compliance platform to serve the industry better.

This is essential for the expansion and growth of businesses in the cannabis industry. It offers new fintech abilities to these companies, ensuring their growth and streamlining their overall processes. The services provided by Alleaves create an entirely new way of business for those in the cannabis industry, one that will sustain scalability, growth, and effort. 

Cannabis Fintech Expansion

Abaca, a cannabis financial tech firm from Arkansas, announced that they are expanding its offerings to cover digital-first banking, payments, and treasury management to the cannabis industry in Mississippi. 

Abaca utilizes an online dashboard that allows cannabis businesses to manage their finances, see their cash position, and make and receive payments. 

The cannabis industry has long been searching for ways to compete in the global market without having the same capabilities and financial services as other industries. Abaca has made traditional banking possible for cannabis businesses in Arkansas, California, Colorado, Florida, Illinois, Louisiana, Michigan, Missouri, Montana, North Dakota, Ohio, Oklahoma, and South Dakota. Now, Mississippi has joined the ranks of states with traditional banking capabilities. 

Arkansas-based Abaca focuses on delivering banking and financial services to businesses in the cannabis industry, giving them opportunities they otherwise wouldn’t have. With the multiple laws and federal compliance burdens put on financial institutions that serve the cannabis industry, most won’t bother. Not only does this minimize the opportunities and growth of cannabis businesses, but it also creates a safety risk, as many of these businesses continue to deal only in cash. 

Abaca seeks to make it simple for cannabis businesses to access standard and necessary financial services. Not only does this help businesses, but it also helps the entire industry. Instead of being left in the dust of modern enterprises with greater financial capabilities, the cannabis industry is starting to enter a level playing field in many states. 

Thanks to Abaca, Mississippi is one of the most recent states to be given financial abilities for the cannabis industry. Cannabis businesses in Mississippi should see financial and opportunistic growth as Abaca’s services take root. 

Just the Beginning

As the cannabis industry begins to acquire more and more types of funding and financing, it will start seeing more growth. Without these funding opportunities, the industry has experienced immense growth and expansion on its own. By tapping into financial investments, the sector’s growth is truly just beginning. 

These opportunities are starting to arise even without federal legalization. When that time comes and the floodgates open, there will be even greater opportunities and growth. 

Funding for the cannabis industry puts it on par with other industries, as they will begin to have the same opportunities in lending, financing, and investing. Yet, in a relatively new industry, the future is wide open. 

However, compliance issues with the federal government remain a challenge. Regulations require vendors to report cash payments that are greater than $10,000. Yet, once cannabis sees federal legislation, it is expected that the industry’s value will grow even more quickly.