Key Facts about Hemp Business Loans
Hemp business loans provide financing for equipment, real estate, and working capital needed to facilitate operations. Some businesses require a combination of these loans types to cover expenses linked to acquiring raw land, constructing and maintaining facilities, cash-outs, and refinancing. The largest loan amounts tend to be granted for commercial real estate purchases.
2019-2022 Projections for the Hemp Industry
Global excitement about the cannabis industry has business booming in every sector. There is an ever-increasing demand for products made from hemp seeds and stalks. Resultantly, funding sources for hemp business loans are financing more ventures than ever.
The Motley Fool reports these key projections for the global industrial hemp industry:
- Global retail sales of hemp totaled $3.7 billion in 2018
- Global retail sales of hemp are expected to top $5.7 billion by 2020
- US retail sales of hemp in 2018 was $1 billion
- US hemp retail sales are expected to top $2.6 billion by 2022
With numbers like those, itвЂ™s easy to understand why so many people are trying to get hemp business loans. Companies that finance hemp businesses typically want to lend at least $1 million for raw land deals, and a minimum of $200,000 for equipment deals. Since the US Farm Bill passed in December 2018, there are a lot of new farmers interested in capitalizing in this lucrative business realm.
ThereвЂ™s no doubt that there are huge profits to be earned by companies that position themselves well in the budding industrial hemp industry. At the very least, it takes an excellent credit score and a polished business plan to get a hemp business loan or any other type of weed loan. Competition for this type of funding is getting tougher every day, and cannabis lenders are becoming more selective about the applicants they cater to.
The professional finance experts at Startup Cannabis Loans.co – Loans have extensive experience in finding the most attractive Hemp Business Loans for well-qualified applicants.