Equity vs. Debt Financing For Cannabis Businesses



Equity vs. Debt Financing For Cannabis Businesses

FundCanna recommends debt financing over giving away equity for cannabis businesses seeking to scale, as it allows for cheaper growth, retains control, and provides flexibility. By borrowing instead of surrendering company shares, cannabis owners can utilize funds for targeted expansion purposes like entering new markets, hiring employees, or purchasing equipment, while avoiding profit sharing or ceding authority to outside investors. Additional benefits of debt financing include tax-deductible interest payments and customizable loan terms to fit specific budgets and goals. When strategically leveraged, debt financing helps accelerate sustainable growth for cannabis companies without the costly equity tradeoffs. With expertise tailored for this uniquely restricted industry, FundCanna provides accessible financing tools for expansion, working capital, and cash flow so cannabis businesses can scale faster and more efficiently.