Thoughts on seller open to equity partnership for working capital loan?

I'm talking to a business owner in the cannabis space (rolling papers), which I know little about personally. He has operated the business for eight years, but doesn't have the financing in place to scale. He purchases raw materials and sells wholesale, so if he carried inventory, he would be in a good place, but can't do that without funds.

He suggested a 25% equity share for a $100K LOC. He continues to operate the business but I provide financial oversight. While he's had $2M in sales, annual is currently closer to $300K, with 50% profit margin. (Numbers need to be vetted.)

Any thoughts around acting as a financing partner in this manner and how to best structure deals? I imagine this would include collateralizing the inventory and business itself given the size.

I'm open to a partner to join my 25% stake if any interest as well. Just reach out.