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Financial Challenges in the Cannabis Industry

Though marijuana has been legalized for both medicinal and recreational use in many states, federal regulations continue to make it difficult for cannabis -businesses to access the resources they need to effectively run and grow their businesses.

Since most banks operate at the federal level, many of them avoid working with cannabis businesses to remain compliant with federal laws, making it difficult for these -cannabis businesses to get access to loans, cash advances, and traditional payment processing solutions used by most businesses.

Cannabis retailers need access to modern financing solutions that are compliant with the constantly changing regulations in the marijuana industry. This allows them to streamline company operations, hire new staff, expand facilities to satisfy the day-to-day needs of their businesses.

At Paybotic, we are committed to providing secure, reliable, and compliant financing and cannabis payment processing solutions for high-risk businesses that need access to capital quickly.

What is a Merchant Cash Advance & How Does it Work?

Merchant Cash Advance gives businesses access to a lump sum of cash that is repaid at a rate proportional to their daily sales. This means that if your sales dip, then your payments will also decrease, making it easier for merchants to manage their repayments.

Businesses can use this lump sum of cash to fund their daily business operations while maintaining a steady cash flow, making Merchant Cash Advance a great alternative to traditional business loans for suppliers, retailers, and manufacturers.

Merchant Cash Advance are not business loans, so they don’t have set repayment terms or APRs. Instead, they are designed to give merchants as much flexibility as possible.

Here is how our streamlined Merchant Cash Advance process works:

  1. You apply for a Merchant Cash Advance through Paybotic.
  2. If approved, Paybotic provides a lump sum payment within 48 hours.
  3. You use the funds to finance daily business operations.
  4. You repay the cash advance via a percentage of credit and debit sales through our payment processing system at your cannabusiness.

Merchant Cash Advance offers convenient, flexible, and fast access to funds for merchants in the cannabis industry.

Why Should You Consider a Merchant Cash Advance?

A Merchant Cash Advance is a great financing solution for high-risk businesses like those in the marijuana industry. Consider the following benefits to determine if a Merchant Cash Advance is right for your cannabis-related business:

Easy Application Process

We understand that merchants need access to cash as quickly as possible, which is why we strive to make our application process easy. Our application paperwork is straightforward, and once all necessary information is complete and submitted, we are typically able to provide same-day approval.

High Approval Rate

Cannabis businesses already have a difficult time getting access to merchant funding and payment processing solutions. At Paybotic, we have extensive experience working with high-risk businesses to provide compliant dispensary cash advance solutions. Even with our current processing volume, we maintain a 95% approval rate for active merchants.

Quick Access to Capital

Running a successful business requires steady cash flow, making it important for merchants to receive their money as quickly as possible. To ensure our clients get money when they need it, we offer funding as fast as within 48 hours after approval.

Transparent Terms & Fees

We pride ourselves on offering merchant-friendly funding solutions. Our Merchant Cash Advance comes with no hidden fees and flexible repayment options. You’re free to use the money for anything you deem necessary for your business.

Grow Your Business

When you apply and are approved for a Merchant Cash Advance, you can use the money to fund growth initiatives to help your business succeed.

This could include:

  • Marketing promotions
  • Equipment purchasing
  • Payroll financing
  • Renovation projects
  • Inventory purchasing
  • Hiring new staff members
  • And more

Cash advances give merchants the money they need to drive business growth in the competitive cannabis industry.

Get Started with Paybotic

Paybotic is determined to help cannabis dispensaries get access to the payment processing and merchant funding solutions they need to thrive. We constantly work to stay ahead of state and federal regulations to ensure all of our solutions are compliant, convenient, secure, and reliable. On top of merchant cash advances, we offer a variety of cannabis payment processing solutions to businesses in the marijuana industry, including:

Contact Paybotic at 844.420.4729 or fill out a contact form to get in touch with our sales team to learn more about our MERCHANT CASH ADVANCE and other payment solutions.

FAQs

What are the benefits of a Merchant Cash Advance for cannabis businesses?

A Merchant Cash Advance (MCA) allows a cannabis business to fund specific initiatives advance on debit sales receivables. Your business can qualify if you meet certain criteria such as accepting debit and credit card payments and selling cannabis products. MCAs are given to a cannabis business in several lump sums. The merchant makes repayments at a fixed percentage of daily credit and debit card sales processed. This repayment plan continues until the balance is paid off. This solution allows newer businesses to grow their operations according to a manageable and scalable financial plan. Paybotic processes applications quickly and can provide a lump sum payment in 48 hours for those approved for a Merchant Cash Advance.

If you have questions about Merchant Cash Advances for cannabis businesses, our team of experts will help you with your questions and connect you with the best partners to fulfill your cannabis payment processing needs. To learn more, fill out a contact form or call us at 844.471.2078. The Paybotic team would be happy to chat about solutions to support your cannabis dispensary success!

How does a Merchant Cash Advance (MCA) work for a cannabis dispensary?

A Merchant Cash Advance offers a cannabis business fast and convenient access to funding. This flexible option allows a business to maintain a steady cash flow and make repayments on credit card sales. A dispensary can use the advance to implement a new initiative like a gift card program or marketing project. Since repayment amounts are determined by the debit sales receivable, cannabis businesses can repay at a pace that works with their growth. A business experiencing faster growth can pay back the MCA sooner. Slower growing dispensaries will benefit from the flexibility of a MCA repayment plan. They can make repayment amounts that are manageable for their current financial status.

If you have questions about MCAs, our team of experts will help you with your questions. To learn more, fill out a contact form or call us at 844.471.2078. We look forward to answering your questions about Merchant Cash Advances.

Are Merchant Cash Advances loans?

No, a Merchant Cash Advance is not a loan, because a MCA does not have set repayment terms or APRs. It is an alternative to a traditional loan, and repayment is based on percentages of daily cash and credit card sales.

If you have questions about MCAs, our team of experts will help you with your questions and connect you with the best partners to fulfill your cannabis payment processing needs. To learn more, fill out a contact form or call us at 844.471.2078. The Paybotic team would be happy to chat about solutions to grow your cannabis business.

How do I know if a Merchant Cash Advance is the right choice for my cannabis business?

The best way to determine if a Merchant Sales Advance is right for you is to discuss your needs with a Paybotic expert. Cannabis businesses that need more flexibility than the terms set by traditional loans are good candidates for MCAs. Newer or smaller dispensaries may experience some initial fluctuation in sales. A MCA repayment amount is based on a formula that accounts for changes in sales, so if sales decrease, then the repayment amount decreases. This plan makes it more manageable for cannabis businesses to make payments without greatly disrupting their cash flow.

If you have questions about MCAs, our team of experts will help you with your questions and connect you with the best partners to fulfill your cannabis payment processing needs. To learn more, fill out a contact form or call us at 844.471.2078. The Paybotic team would be happy to chat about Merchant Sales Advances!

Ready To Get Started?