Is purchase order financing a good fit for cannabis & hemp processing?

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.

How fast can a cannabis & hemp processing shop get funded?

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.

Do you charge cannabis & hemp processing manufacturers any fees?

No. We are a business consulting service and are not paid by you. Our funding partners compensate us only after a referred manufacturer actually receives their funds.

Do I have to give up equity?

No. Every program we place is non-dilutive. You keep 100% ownership of your shop.

Can a cannabis or hemp business get an SBA loan?

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.

Can a THC-licensed operator use invoice factoring?

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.

Is PO financing more expensive than a bank line?

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.

Hemp processing facility with drying and extraction equipment

Purchase Order Financing · Cannabis & Hemp Processing

Purchase Order Financing for Cannabis & Hemp Processing shops

Say yes to the big PO. We match cannabis & hemp processing manufacturers with the purchase order financing structure that fits how you actually run — no equity given up, no application, origination, or closing fees to you.

Start a Quick App Call (844) 623-1234

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 placed into 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

Quick app for cannabis & hemp processing

Takes about 30 seconds. We'll match you with the right funding partner — no obligation.

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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 Processing

Invoice Factoring for Cannabis & Hemp Processing

Turn unpaid invoices into cash today—stop waiting on net-60 or net-90.

Explore Invoice Factoring for Cannabis & Hemp Processing

Asset-Based Lending (ABL) for Cannabis & Hemp Processing

Revolving lines secured by receivables, inventory, and equipment.

Explore Asset-Based Lending (ABL) for Cannabis & Hemp Processing

Purchase Order Financing for other manufacturing niches

Purchase Order Financing for Food & Beverage Manufacturing Purchase Order Financing for Medical Device Manufacturing Purchase Order Financing for Metal Fabrication Purchase Order Financing for Plastics & Injection Molding

Frequently Asked Questions

Ready to keep production moving?

Start with a quick app or a phone call. We'll tell you exactly what the right program requires—at no charge.

Start the Conversation Call (844) 623-1234

Apply. Fund. Deliver. — No obligation.

AI-assistedDepending on live availability, calls may be answered by Mary, our AI Assistant, who takes a message and books a callback. Or email us instead.