16 Jun Simplified Capital Connects Cannapreneurs With Capital
If you’re an entrepreneur, and your company isn’t quite ready for potential investors, how do you acquire financing? For regular businesses, getting a loan from a bank or financial institution is the most straightforward answer, but that’s not always an option for those in the marijuana industry. Most banks won’t even open bank accounts for marijuana businesses, much less provide a loan to one.
Those in the marijuana industry looking for financing, more often than not, have to get creative when it comes capital; and it is exactly those kinds of people that Simplified Capital Founder Phillip Stuart is looking to help.
Simplified Capital is a consulting firm that specializes in assisting clients who need to obtain financing, sometimes through untraditional means. Drawing upon a list of hundreds of lending partners, Simplified Capital tries to find the perfect partner for each client’s specific lending needs in exchange for a consultation fee of $7,995.
“We provide multiple financial solutions in which to answer the needs of our valued clients seeking to establish or grow their company,” Stuart said. “Whether a client is a startup with no actual operating time in business as of yet or well established, we have the tools to get them heading the right direction.”
Some of those financial solutions include: working capital, lines of credit—both secured and unsecured—finance programs with same as cash options to the customers of sellers/services providers or MFG’s selling equipment,equity investors, private lenders, commercial real estate, and short and long term loans.
The initial idea for Simplified Capital originally came to Stuart in 2002 while working at an equipment leasing company. “I came to the realization that there needs to be more of a ‘One Stop Shop’ for business owners to contact in order to obtain their financial needs,” Stuart stated. The company Simplified Leasing was born out of this idea; and after nearly a decade of adding more services and financing options to the company, Simplified Capital naturally evolved out of its corporate sister.
Unlike some private investments, Simplified Capital doesn’t require entrepreneurs to be in the R&D or proof of concept stage of development in order to acquire financing. All potential clients need to work with Simplified Capital is an idea, someone with good credit and the dedication to make their business work.
According to Stuart, the company’s most popular program is its unsecured business funding. “In short, we work with the client, obtain with them $50,000 – $160,000 (per person) or more in unsecured credit lines,” Stuart explained. “Most lines have a promotional term to the customer starting as low as 0 percent up to 24 months.”
The flip side to the up to 24-month zero-interest period is that at the end of this promo period, interest will begin to accrue on the remaining balance, at a rate determined by their credit score and market in the future.
While all cases are not the same, Stuart has estimated that clients on average see interest rates from 9.99 percent up to 17 percent. While that carries its own inherent risk, Stuart contends that “most in this industry make enough to pay off the lines of credit within the promotional terms.”
Although the marijuana banking crisis has severely limited many businesses financially, Stuart said that the crisis has actually helped his business more than it has hurt it.
“At the risk of upsetting someone, we love [the marijuana banking crisis]. It has introduced us to so many awesome entrepreneurs seeking funding,” Stuart said. “Granted, there are business owners looking to process credit cards and deposit capital into accounts, but there are worse things than accepting cash, paying off all your debts with cash and having a safe full of cash.”
Although Simplified Capital’s business model may not be the first thing you think of when it comes to business financing, it still presents an option for those that are in need of capital. For every good idea, there is a person out there trying to get funding for it; and when most traditional sources of financing fail, entrepreneurs may find themselves looking to companies like Simplified Capital.
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