Choosing a Lender

Best Cannabis Lenders and Loan Brokers: How to Choose

No single lender is best. The right one fits your deal size, state and speed. Here is how to compare them fairly.

Updated October 202611 min readMeridian Private Line Editorial Team
Two people reviewing printed term sheets across a desk with a laptop open beside them

By the Meridian Private Line editorial team · Sources are listed below.

About this page: This is an informational overview built from public sources. Editors checked the cited sources. We have access to 75 lenders. Confirm details with the lender that best fits your situation.

Affiliate Disclosure: This site may earn compensation if you request a lender introduction. That does not change your terms. Full disclosure.

The short answer

Direct lenders fund deals from their own capital. Brokers shop your deal to many lenders and take a fee. Marketplaces list offers side by side.

Collect three or more offers. Score them on cost, speed, flexibility and cannabis experience.

On this page

  1. How to choose a cannabis lender
  2. Direct lenders vs brokers
  3. Lender profiles and comparisons
  4. How to check a lender
  5. Questions to ask before signing
  6. Alternatives to FundCanna and similar platforms
  7. When a broker is worth the fee
  8. A worked scoring example
  9. How to run a three-quote week
  10. Terms to know
  11. Frequently asked questions

How to choose a cannabis lender

Start with the deal, not the brand. Loan type, size and state narrow the list quickly.

Three routes to a lenderDirect lenderYou apply to oneBrokerOne file, many lendersMarketplaceCompare listed offersCloseSign and fundThree routes to a lender
Each route trades control for reach.

Direct lenders vs brokers

RouteStrengthWatch for
Direct lenderFaster on a matching dealOne quote, one view of risk
BrokerWider market, help with packagingFees and conflicts of interest
MarketplaceSide-by-side comparisonLead resale and sales calls

Ask any broker who pays them and when.

Lender profiles and comparisons

This page does not rank or review named lenders.

Until then, build your own sheet. Record the loan type, amount, term, total cost and close time for each offer.

Lender Shortlist Scorer

Rank up to three offers on what matters to you.

How to use this: Set the weight of each factor from 1 to 5. Rate each lender from 1 to 5. The highest weighted score leads your shortlist.

FactorLender ALender BLender C
Total cost
Speed to close
Flexibility on terms
Cannabis track record
Clear fee disclosure
Lender A
Lender B
Lender C

How to check a lender

Public lenders file reports you can read. Chicago Atlantic's 10-K reports a 16.3 percent weighted average loan yield.

It also reports a 2.2-year weighted average maturity.

  • Read a public lender's 10-K for yield, maturity and credit quality.
  • Search the FTC's case pages for the lender or broker's name.
  • Ask for borrower references in your state and deal type.
  • Check your state regulator's license records.
  • Get total repayment in writing before you share documents.

The FTC's RCG Advances case ended in a permanent ban from the cash advance industry. That is why a quick search is worth the time.

Questions to ask before signing

  • What is the total repayment over the full term?
  • What fees apply at closing and after?
  • What happens if I pay early?
  • What triggers a default?
  • Who will service the loan and how do I reach them?
  • Can you share references from borrowers in my state?

Write the answers down. Compare them across lenders.

Alternatives to FundCanna and similar platforms

A known platform is a good place to start. It is not the only place.

Compare the same loan size and term at two or three other sources. Include credit unions and private lenders.

Price differences of a few points add up over a long term.

When a broker is worth the fee

A broker pays off when your deal is complex or other lenders declined it.

It pays off less on simple deals you can place yourself.

Get the fee in writing. A broker fee should be disclosed before you hand over financial documents.

A worked scoring example

These scores are an illustration. Your weights will differ.

A buyer weights cost 5 and speed 3. Flexibility gets 4, track record 4 and fee clarity 5.

Lender A scores 4, 3, 3, 5 and 4. Lender B scores 3, 5, 4, 3 and 3. Lender C scores 5, 2, 3, 4 and 5.

LenderWeighted score
A3.86 out of 5
B3.48 out of 5
C4.00 out of 5

Lender C wins on cost and clarity even though it is slowest. That is the point of weights.

How to run a three-quote week

Monday: send the same package

One document set, one summary.

Tuesday and Wednesday: take calls

Write down every number.

Thursday: score offers

Use the scorer above.

Friday: negotiate

Ask the leader to match the best fee.

Quotes shift fast. A tight week keeps them comparable.

Terms to know

TermPlain meaning
Term sheetA summary of proposed loan terms before the final contract.
Referral feeA payment a lender makes to a broker.
MarketplaceA site that lists offers from several lenders.
Direct lenderA lender that funds loans from its own capital.
Soft pullA credit check that does not affect your score.
Total costEverything you repay, including fees.

Frequently Asked Questions

Direct lenders can be faster on deals that match their box. A broker widens the field when your deal is unusual. Ask a broker how and when it is paid.
Ask for references from borrowers in your state and deal type. Check public filings and state records.
Refusing to state total repayment, pushing same-day signing and vague fee language are warning signs.
Some charge the borrower and some are paid by the lender. Get the fee arrangement in writing before you share documents.
Yes. Compare the same loan size and term across three sources. Include the platform you already know.
How the figures work: Figures with a link come from the source named. Everything else is an illustration built on numbers you enter.

Sources and further reading

Not financial or legal advice. Figures in the calculators are illustrations built from numbers you enter. Cannabis remains federally restricted. Lender appetite and state rules change often. Confirm current terms with a licensed professional before you sign.