The most recent form of financing is cannabis equipment loans; this is after the banks were allowed to offer services to cannabis business owners. This is to help them acquire cannabis equipment affordably and conveniently. The financial institutions provide a variety of loans and terms and conditions to the clients.
Check out the guidelines below to ensure that you have an efficient and convenient manner of acquiring cannabis equipment.
Types of cannabis extraction methods
- Hydrocarbon extraction
This uses butane or propane solvent that goes through the cannabis to produce cannabidiol.
- Ethanol extraction
This type of distillation pulls out the critical content from the cannabis plant. This is done through fractional distillation to separate the components of the raw cannabis.
- CO2 extraction
The method is used to separate the different constituents in the raw cannabis to develop a final and pure product.
Types of cannabis equipment that you should consider investing in
If you are looking forward to acquiring cannabis extractor equipment loans, you need to understand the right machinery used to develop the products.
Below is some of the critical equipment to get, especially for manufacturing plants;
- Cannabis chiller
- Solvent-based cannabis extraction equipment
- Rotary evaporator
- Particulate filter
- Distillation system
- Decarboxylation vessel
- Understand the interest rates
You need to be well conversant with the kind of interest rates the financial institution offers. This should be well understood if you fail to pay the money at the expected time. The financial institution should provide the grace period following their terms and conditions and your credit score.
Always consider enquiring about the possible causes of illegibility, especially when applying for loans. If you are just starting out consider a financial institution with affordable rates.
- Enquire about the collateral
One needs to understand what may account for the financing if you fail to pay back the money. Most financial institutions usually ask the clients to surrender the equipment during the grace period. These details should be asked when applying for the loan. Other financial institutions ask for personal assets; you can still consider this but ensure that you understand the term and conditions.
- Financial institution’s reputation
Before you agree to receive financing from a particular financial institution, you need to understand how they offer their services. This can be well understood from previous clients’ reviews and comments. You need to be well conversant with this to be enlightened on the legal steps they can take towards failing to pay the money on time.
Below are some of the questions that you should consider asking the institution’s representatives;
- How the assessment is handled when granting you the loan
- Any legal measures are taken if you fail to pay the entire loan.
- The amount of grace period offered by the financial institution
Not every financial institution is applicable or reliable when seeking a cannabis business loan. It takes a bank that understands cannabis financing to offer you affordable loans to acquire cannabis equipment.