Bespoke Financial raises $125m to expand lending capacity
By Edlyn Cardoza
Bespoke Financial, the nation’s first cannabis-focused FinTech lending platform, recently announced closing a $125 million credit facility.
This infusion of capital from institutional investment funds is a strong show of confidence in cannabis debt financing and Bespoke Financial’s approach to working with these businesses. The company has effectively mainstreamed cannabis lending by providing a comprehensive technology platform and data-driven application process, enabling licensed cannabis operators to access financing quickly and seamlessly, as evidenced by the company’s automated pre-qualification for dispensary financing.
“This added lending capacity demonstrates that more institutional investment firms are recognizing the cannabis industry’s potential. Institutional investors are chasing high yields and seeking to minimize volatility, especially through investments that are not subject to future COVID-related market disruptions. Cannabis debt financing checks all of these boxes,” said George Mancheril, chief executive officer of Bespoke Financial. “Bespoke Financial is serving as a conduit for larger pools of capital to enter the space in a structured and scalable manner ahead of federal regulatory change, if and when that comes.”
Bespoke has been at the forefront of the industry trend toward debt financing, working with large and small companies of all license types, including brands like Jeeter, Buddies, Claybourne Co., and Friendly Farms. Since the company’s launch more than three years ago, Bespoke has provided funding for a growing number of businesses spanning the entire cannabis supply chain. The company now works across the country in 12 regulated markets from California to Maine, financing lines of credit in amounts as large as $15 million.
“The rise of debt financing is an encouraging and important moment in the history of the industry and will enable smart operators to scale and remain nimble without sacrificing growth opportunities,” Mancheril said. “Debt capital is a tool that has been a mainstay of how traditional businesses operate and is now finally widely available to cannabis businesses of all sizes. We feel this is really exciting news, not just for Bespoke and our team, but for the industry as a whole.”
Retailers interested in pursuing dispensary financing can pre-qualify for a Bespoke Financial revolving line of credit by completing an online application.
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