For The Cannabis Industry, Loans Are Short And Interest Rates Are High

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Major credit card companies don’t service the industry, which means most transactions at state-legal marijuana stores are in cash.

Duncan Ley, who cofounded California Street Cannabis, a two-store dispensary chain in San Francisco, also owns two bars. He has no problems getting lines of credit for his watering holes, California Jack’s and Teeth. He uses online lender Blue Vine to take out lines of credit when needed. But banks and alternative lenders like Blue Vine, Cabbage and Square do not work with marijuana companies.

If payments are 15 to 29 days late, the interest rate rockets to 50%. Thirty days or more, and the rate jumps to 100%.federal tax code companies that sell cannabis Ley also knows he’s being taken advantage of to a certain degree. The company credit card he uses for his bars has a 14% annual percentage rate, while Bespoke offers the equivalent of a 20% APR. Still, Bespoke’s rates “are pretty darn good considering it's cannabis,” explains Ley, who has been quoted close to 30% APR from other lenders, some of whom wanted the loan to be secured by his personal real estate.

 

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GodandtheBear 🙄

Legalize it federally.

Maybe we could get JoeBiden to legalize Cannabis at the Federal level and adopt nationwide rules that are fair so that this can happen. You shouldn't become a Felon for smoking a joint. Cannabis is safer than Tobacco for SURE!

Good! Shouldn’t be easy

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