Cannabis related Saas financing?

investor profile

August 31, 2022

by an investor from Columbia University - Columbia Business School in Jacksonville, FL, USA

I have stumbled upon a Saas with decent metrics and a healthy SDE. However, the SBA will not touch it b/c it is an inventory management tool for cannabis dispensaries. Does anyone have any ideas on alternative funding?

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commentor profile
Reply by an intermediary
from University of Texas at Austin in Austin, TX, USA
There are a few credit unions and banks that will do business with cannabis related industries, but it often is dependent on the location of the business.

Where is this company based (and could you move it to a state like Colorado, Washington, California, etc. that are 'friendlier' to the industry)?

Secondly, a lot of cannabis related $$ is 'trapped' in CA, WA, CO. I am in TX and have a large real estate transaction where the buyer wants to pay cash because he has $$ from a cannabis business that he's having trouble getting 'out' of California. I'm unsure of how you might find this particular breed of investor, but it's potentially an idea.

Who is the business banking with now? Try them?
Since you are asking about SBA, my assumption is that this is a deal needing under $5MM in debt; depending on the structure - consider seller financing?
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We have some lenders that will do Cannabis financing. Happy to have a discussion and see if it is a fit. We are a Commercial Loan Brokerage shop with over 350 funding partners we work with. I can be reached directly at redacted
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