We were recently informed by one of our top cannabis lenders that they’ve opened up a new lending platform. They now have loans lending against just the license!
This capital source has been a real estate backed lender for as long as we’ve been working with them. We’ve closed several deals across CA with them and now they’re monetizing and lending off of the value of cannabis licenses.
The deal flow they’re looking for right now is limited but this is HUGE news. As you’re well aware, the easy money for cannabis brought in from Canada is drying up. And, if you don’t own the real estate your company is based out of then your sources for financing are slim.
With this new avenue, the license you worked hard to procure can now be monetized and provide you with working capital.
If you need capital and have a license that you’d like to monetize then this is the perfect group for you.
They’re looking for:
- Loan size
- $2M Max
- 50% LTV max leverage
- Can increase the loan amount if real estate can be crossed
- Valuation dependent on market
- $2M Max
- Geographics:
- CA Only
- Major markets, no tertiary
- CA Only
- Rate
- Varies, but no less than 12% & 3 pts
- Term:
- 2 year max with notes written to 12 months
With lending off of the license, each market and municipality is treated differently. A license in Santa Monica has different rules and regulations than a license in San Francisco and they will make allotments that take this into consideration.
