Are you a marijuana business owner?
- Looking for debt-based funding for your licensed marijuana business and unable to find it?
- Interested in retaining your equity without having to dilute shares with new ownership?
- In need of additional financing to expand and grow your business?
Dynamic Alternative Funding provides non-bank funding solutions for licensed marijuana businesses that need working capital and are looking to finance equipment, real estate or to expand their operations.
Customer Success Stories
Situation: A Denver cannabis dispensary needed to move to a larger space to accommodate their needs. During the transition they realized they needed additional working capital. There was a 90-day period where plants were unable to be harvested, thus impacting cash flow. They were in need of a quick solution to tide them over until they could harvest again.
Solution: Dynamic Alternative Finance arranged a $250K bridge loan for the dispensary which allowed them to cover the gap during their move to a new facility.
Results: The dispensary was able to successfully make the move and used the bridge loan to cover the gap until they could harvest again.
Situation: A Denver dispensary needed working capital to expand stores and increase market share. They were growing at fast pace, and internally financing the expansion was affecting cash flow. They were looking for a short term working capital to fund their growth. They were also very sensitive to giving up equity in the business.
Solution: Dynamic Alternative Finance arranged $1.5 million working capital loan allowing the dispensary to take on debt without giving up equity.
Results: The dispensary continues to add retail stores to its operation and successfully scale without giving up equity.
Situation: A successful local business wanted to expand its two-store operation to 10 or more stores.
Solution: Debt-based financing without relinquishing equity or or control.
Results: We reduced borrowing costs for the client from 32% to 18% annually, including weekly unsecured payments. We arranged, through a syndication partner, a $2 million term loan for 12 months to help the company expand and open new stores. A second loan for $1.3 million will allow the client to purchase new lighting to improve yield and reduce energy costs.
Situation: The owner of this franchise had exhausted friends and family financing and wanted to leverage his balance sheet for expansion.
Solution: Private financing with a sale leaseback of existing equipment.
Results: We arranged a sale leaseback, taking title of the existing equipment and providing $279,000 in cash to the owner with an affordable monthly payment for the next three years at a repayment rate 14%.
Situation: An equipment vendor needed financing for his customer. The vendor was going to lose the sale unless alternative financing was obtained.
Solution: An equipment finance agreement with a large down payment that compensated for the customer’s weak financial profile. The customer received an affordable monthly payment for the next two years.
Results: The vendor made the sale and is putting people to work in his factory. The customer is now maximizing their warehouse space with the new equipment.
Situation: This leading technology provider was not a cannabis provider, but their bank would not loan the company money despite outstanding financials over the company’s five years in business.
Solution: Private financing via a line of credit that did not dilute their equity.
Outcome: We helped the company acquire a $2 million line of credit at a mid-teens rate for one year. They are currently looking to expand the line to $5 million.