Cannabis farmers are a rare breed. They know that farming is a risky business. There are tons of pitfalls in the industry, from legal to banking issues, from weather to distribution. Yet, many Hemp/Cannabis farmers are in it for more than just profit. Some love the health aspects of the plant and others love the freedom that comes with owning their own businesses. But what happens when the business they love comes on hard times? Off-season slow-downs, or a failed Cannabis crop can lead to business owners wondering if the struggle is worth it? We’re here to tell you that with a little help from your friends in the business financing industry, your business can succeed given any circumstance that may arise.
Failure to Comply
When it comes to the CBD industry there is certain criteria that a farmer or distributor must adhere to. For example, THC levels in Hemp flower and CBD oils, must be under 0.3%. But what happens when a hemp farmer grows what is known as a “Hot Crop”? A Hot Crop is a batch of plants that, due to various conditions during the grow period, can result in their harvest with a THC level that is higher than the legal limit. So, what is a farmer to do? The recommended laws require that the farmer destroy his or her crop and cannot offer it up for sale to consumers or CBD oil production houses. In this instance the farmer is liable for the financial loss and could be looking for business financing to help pay staff or pay their bills. Hemp business financing can help hemp farmers keep their heads above water till the next growing season, without having to shut down production on the other products that may still need processing.
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Equipment Financing for The Hemp Industry
Growing hemp is very labor intensive, especially since many farmers do not presently have the proper equipment to economically process their crops. Although some hemp farmers say they have been able to use modern machinery to get the job done, others have had to invest tens-of-thousands-of-dollars for new equipment. And, because certain types of hemp plants must be put in the ground as seedlings, a lot of the labor that goes into producing a healthy crop must be done by hand. Business financing for the equipment and/or staff needed to harvest a hemp crop can always be found from independent business finance lenders like United Business Funding. Business financing for the hemp industry can assist farmers who are looking to add new equipment to their operation. Business funding can also be used for production, packaging, and distribution. While your business is waiting for orders to come in, the funds you just received can be used to pay staff and other production costs that are common in the industry.
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Weather or Not
Mother nature can be a b*tch! Climate change aside, hemp farmers have a lot to contend with when it comes to creating a healthy crop. Too much rain can stilt growth. Too much sun can create a struggling environment for growing a healthy plant. An early frost can also disrupt harvesting and therefore a weak and undesirable final product. We haven’t even begun t talk about the other factors that can go into a failed hemp crop during the growing season. That’s why successful hemp farmers know that while losing an entire harvest to wind, smoke, fires, cold weather or rain, their business can still be saved by obtaining financing in the form of a short-term business loan. Successful hemp business owners who secure financing for their businesses continue to thrive year after year.
Hemp farm business funding as well as business financing for retail, restaurants, trucking companies and so much more can always be found at United Business Funding. Give us a call today at 888-351-3863 or get-a-free-quote on financing for your business here.