Now is a great time to start a new cannabis business. US retail marijuana sales are on pace to hit nearly $37 billion by 2024. This industry can be a complicated space and, like many businesses, requires a healthy capital outlay during the startup phase. Purchasing new equipment can be expensive, and it isn’t always possible to secure cannabis financing from traditional sources like banks. Buying or leasing used cannabis equipment comes with many benefits and is a smart solution for reducing your startup costs.
Top Benefits of Used Cannabis Equipment
Used packaging and processing cannabis equipment can fill a new business’s immediate and growing need for manufacturing equipment. Sourcing used manufacturing equipment can help reduce your startup costs, making it easier for your business to qualify for capital loans.
Your business will save money on the purchase price versus new equipment. When you’re in the early stages of your business, you may not even know what equipment will be best for your company and its future. You may end up needing to upgrade or use entirely different equipment altogether. Purchasing or leasing used cannabis equipment allows you to get started in the industry without risking too much upfront.
Used cannabis equipment often comes from top equipment manufacturers and is generally built to produce high-quality products. In many cases, this equipment can serve you just as well as newer equipment.
Finding the right supplier is the key to sourcing reliable used cannabis equipment. Here are questions you should seek answers to before making a purchase:
- Is the full history of the equipment available—e.g., maintenance logs, list of repairs?
- Are decontamination documents available?
- Is the equipment up-to-date with technology standards?
- What is the life expectancy of this type of equipment?
- How many years will you get out of the equipment based on its original date?
- Are repair parts available?
- Can the manufacturer perform repairs or will they require an outside service company?
As long as you perform due diligence first, you’ll find that used cannabis equipment offers you the opportunity to grow your cannabis business without breaking the bank.
Cannabis Equipment Financing Solutions
Financing is a pain point for new cannabis companies, even when acquiring used equipment. Because cannabis remains illegal at the federal level, banks are hesitant to work with cannabis businesses despite the plant’s legal status in many states. As a result, cannabis-specific funding companies have entered the market to fill the gap and provide much-needed capital.
These private firms are common sources of cannabis financing for marijuana and hemp businesses and can provide versatile financing solutions to help grow your business. The best of these firms are formed by cannabis industry pioneers like you. They have a passion for the plant, years of first-hand experience, and a wide variety of industry expertise. They will understand your challenges—such as banking, price fluctuations, and changing regulations—and provide access to their industry network and speed to market.
Two-thirds of Americans want legal marijuana, according to a September 2019 poll. As the push for legalization at home and abroad grows, marijuana has become increasingly popular as the product of choice for new small-to-medium businesses. As of March 2021, more than half of all states have approved some form of comprehensive, publicly available medical marijuana program, with 15 allowing adults to legally use it recreationally.
With a Democrat-controlled US government, cannabis-related legislation stands a better chance of congressional approval, creating big opportunities for the US marijuana industry. If you’ve been considering starting your own cannabis business, there’s never been a better time. Starting out with used cannabis equipment allows you to get your foot in the door of this massive industry that shows no signs of slowing down.
We Can Help You Acquire the Equipment You Need
At Sweet Leaf Capital, we know how difficult it can be to find and finance cannabis equipment. That’s why we’ve built this company—we help businesses like yours so we can push the industry forward together.
In addition to our financial solutions, we also offer you our industry connections and extensive network of vendors. We do everything we can to help you find the equipment you need.
If you’re interested in learning more about how we can help you fund your new or used cannabis equipment, feel free to get in touch.