Purchase Order Financing · Cannabis & Hemp Processing
Purchase Order Financing for Cannabis & Hemp Processing shops
Say yes to the big PO. Our team looks for a funding partner with a purchase order financing structure that fits how you actually run. No equity given up, and no application, origination, or closing fees to you.
Why cannabis & hemp processing shops choose purchase order financing
If you're processing hemp under the 0.3% THC federal threshold — CBD extraction, fiber, grain, or hemp-derived ingredients — you're operating a legal federal business and a real slice of the financing market is open to you: equipment financing, invoice factoring on non-plant-touching receivables, and working capital lines from lenders who understand the crop.
If you're a state-licensed THC cultivator, processor, or dispensary supplier, the picture is different, and we're not going to sugarcoat it. Because cannabis is still a Schedule I substance federally, SBA loans and most bank credit, and the majority of factoring facilities, are simply off the table for plant-touching activity — that's a federal restriction, not a reflection of your business quality.
Purchase Order Financing is one of the most direct ways to close that gap. Get the capital to fulfill large customer orders without straining cash flow.
What cannabis & hemp processing shops get
- Take on orders that would otherwise be out of reach
- Doesn't require giving up equity
- Often pairs with invoice factoring for continuous cash flow
How it works
- 1You receive a purchase order from a creditworthy customer
- 2The PO financing partner pays your suppliers (directly or via letter of credit) so you can produce the order
- 3You produce and deliver the goods
- 4The customer pays on the invoice; the financing is repaid and you keep the profit
Cash-flow realities we see in cannabis & hemp processing
- No access to SBA loans or most bank credit for state-licensed, plant-touching THC operations
- Limited factoring and asset-based lending availability due to federal illegality of cannabis
- 280E tax treatment compressing after-tax cash even when revenue is strong
- Cash-intensive operations from limited banking access adding security and handling costs
- Extraction, drying, and processing equipment costs with few conventional financing sources
Get referred for purchase order financing
Tell us the basics. We'll confirm the fit and tell you exactly what this program requires before you fill anything long.
- ✓ No application, origination, or closing fees
- ✓ No equity given up
- ✓ US-based cannabis & hemp processing shops only
Other programs that fit cannabis & hemp processing
Equipment Financing for Cannabis & Hemp Processing
Finance new or used machinery, CNC, robotics, and production lines
Explore Equipment Financing for Cannabis & Hemp ProcessingInvoice Factoring for Cannabis & Hemp Processing
Explore turning unpaid invoices into working capital instead of waiting on net-60 or net-90
Explore Invoice Factoring for Cannabis & Hemp ProcessingAsset-Based Lending (ABL) for Cannabis & Hemp Processing
Revolving lines secured by receivables, inventory, and equipment
Explore Asset-Based Lending (ABL) for Cannabis & Hemp ProcessingPurchase Order Financing for other manufacturing niches
Frequently Asked Questions
Yes — purchase order financing is one of the programs we most commonly place for cannabis & hemp processing shops. Manufacturers who have a confirmed purchase order from a creditworthy buyer but need capital to buy materials or pay suppliers. Full mechanics: the Purchase Order Financing program page. Sector overview: Cannabis & Hemp Processing.
It depends on the program. Factoring often funds within days of account setup; equipment and working capital usually run days to a couple of weeks; SBA and larger term loans take longer. We tell you the real timeline up front.
No. We are an independent business financing referral service and are not paid by you. In most states, funding partners pay us when an account funds or activates; in California and Missouri they instead pay a fixed fee per inquiry, whether or not you are funded. Either way, you pay us nothing.
No. Every program we refer is non-dilutive. You keep 100% ownership of your shop.
State-licensed, plant-touching THC businesses cannot get SBA loans because cannabis remains a Schedule I controlled substance federally and SBA programs require federal legality. Federally legal hemp processors under the 0.3% THC threshold may qualify for SBA and other bank programs on the same basis as any manufacturer.
Rarely, and only in limited cases. Most factoring companies decline plant-touching cannabis receivables due to federal illegality and banking restrictions. Some ancillary or hemp-derived revenue tied to the same operator may still be factorable if it's cleanly separated from THC sales.
It typically costs more than a traditional bank line, but it's often the difference between accepting a large order or turning it down. The profit on the order usually more than covers the cost.
Ready to keep production moving?
Start with a quick inquiry or a phone call. We'll tell you exactly what the right program requires. At no charge.
Apply. Fund. Deliver. No obligation.
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