LOS ANGELES, Oct. 13, 2021 (GLOBE NEWSWIRE) – Bespoke Financial, the nation’s leading cannabis-focused fintech lender, has also become the first to provide cannabis operators with a revolving line of credit on inventory, allowing businesses to ” gain a competitive advantage by better managing necessary operational expenses while maintaining additional financial resources for long-term capital and growth initiatives.
“Companies in traditional industries have had access to this tool for decades, but until now cannabis operators were often forced to choose between funding short-term operational expenses and pursuing long-term growth plans,” he said. said George Mancheril, CEO of Bespoke Financial. “This gives operators a significant advantage over their competitors who do not have access to flexible financing, and really puts cannabis operations on a par with the modern business practices of more established industries.”
For example, Bespoke Financial recently secured a $ 5 million inventory line of credit for Claybourne Co., a California-based cannabis company that produces many of the state’s most popular floral and pre-roll products. Claybourne’s plans include expanding their cultivation capacity, a costly long-term growth investment that could strain the company’s ability to launch new products and maintain production to meet sales. The flexibility offered by the line of credit allows Claybourne to meet current and future long-term needs.
“We have been successful in the market by offering a diverse portfolio of products, which is a critical part of our business and the expansion of these products is key to our continued growth,” said Nick Ortega, CEO of Claybourne Co. “However, we also have significant short-term working capital requirements, such as expenses for labor and utilities, as we gradually increase our additional cultivation capacity. The flexibility of this line of credit is something that just hasn’t been readily available to the cannabis industry in the past. “
Businesses need financing to grow. But with the federal ban still the law of the land and different regulations from state to state, it is difficult, if not impossible, to obtain funding. Conditions in the cannabis industry make it difficult for companies to demonstrate even good credit, and credit companies always avoid the industry. But Bespoke Financial’s inventory line of credit has enabled Claybourne Co. to launch two new retail products as well as expand its product line, while retaining the ability to pursue its long-term growth plans.
“This assured us that we would have the necessary funding, as well as the working capital to scale the business,” Ortega said. “We’ve been looking for a working capital line of credit for some time, but it’s just not readily available to the cannabis industry whether you’re a leading brand or not.”
About Bespoke Financial Founded in 2018, Bespoke Financial is the nation’s leading licensed fintech lender focused on the cannabis industry and focused on bridging the gap between institutional investors and cannabis. Led by a team of leading experts in the fintech and cannabis industries, Bespoke Financial provides clients with access to working capital by providing short-term loan options to fuel business growth in the legal cannabis industry, reducing cash cycles and providing cannabis companies with greater financial flexibility. The company is backed by respected venture capital firms such as Casa Verde Capital, Greenhouse Capital Partners, Outbound Ventures, Vista Investment Group, Ceres Group Holdings and Sweat Equity Ventures. For more information, visit www.bespokefinancial.com or contact us on LinkedIn.
About Claybourne Co. Founded in 2017, Claybourne is a leading cannabis grower, breeder and brand offering a wide range of flower, pre-roll and concentrate products to the California market. Claybourne’s mission is to produce the highest quality flower-based cannabis products accessible to a wide range of consumers. By focusing on the demands of retail customers and consumers, Claybourne has innovated a top-selling product portfolio that is unmatched by its competitors in the world’s largest and most competitive cannabis market. For more information, visit www.claybourneco.com, follow us on Instagram or connect with us on LinkedIn.
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