Cannabis-Focused Lending Company FundCanna Launches With $30M in Debt Funding Available
The cannabis industry on Thursday hosted the launch of new cannabis-focused lending company FundCanna, co-founded by financial services veteran, Adam Stettner.
FundCanna said it would provide the nascent marijuana industry with a well-funded platform for growers, producers, retailers, and all participants in the cannabis supply chain.
The first products will be look like factoring offers, often seen in the apparel and retail industries, offering term loans of 30 to 180 days. The San Diego, Calif.-based company said its offerings will be flexible and highly customizable.
Beyond the initial $30 million raise, FundCanna said it has access to additional capital through its principals, investors and partners, including an extensive national network built over the past 20+ years of financing America’s small businesses.
Stettner, with his team of financial services industry leaders, brings over two decades of lending experience, having facilitated over $20 billion in financing on all types of credit, including business, personal and student loans.
“The cannabis industry is in a fast and dynamic phase requiring significant sources of working capital and growth that have not been available to it until now. This lack of debt financing has hampered growth and driven up costs. borrowing,” Stettner, co-founder and CEO of FundCanna, said in a statement.
“It is common for there to be a gap between the need to make payment and the time it takes to turn purchases into income. FundCanna will fill this gap and provide access to working capital for the licensed cannabis industry .
Fixing the Debt Deficit
While expanding rapidly, and now in over 35 states, the cannabis industry still faces a massive shortage of debt financing from traditional banks and non-bank lenders. What little debt financing is available to the industry today is generated by high-cost sources of capital, including sale-leasebacks, non-conforming asset-based loans, and other forms of debt capital. which are more expensive than the solutions available for traditional federal funding. regulated industries.
“FundCanna is here to solve the debt deficit in the cannabis industry“, said Stettner.