Why Lease Cannabis Equipment from MJ.Lease?
5 good reasons to use MJ.Lease to finance your equipment:
Save your equity capital
Equity financing is the most expensive money you have in your business. It should be used to grow your business by investing in marketing, product development, staffing etc. Don’t use expensive money to finance equipment, use equipment leasing to spread the cost of income producing equipment over time with a small initial investment and affordable monthly payments.
Reduce your tax liability - Read More Here
Structured correctly, you can expense 100% of your monthly lease payment against Cost of Goods, which is in compliance with IRS rule 280e. Download a document regarding tax savings with leasing HERE.
You decide what equipment you need
Every purchase decision is in your hands – we do not tell you what to buy or how much to pay for it. We will commit a line of credit to you and you can use it, as you need it. You can even refinance equipment you paid for with that expensive investor money.
Speed & Service
Unlike traditional banks and institutional lenders, we won’t keep you guessing. Our application process is simple and we make quick decisions.
Relationship is not a commodity
We value our relationships with our clients, which is why they stay with us through the different stages of their growth. Our principals are deeply experienced business financiers who can support you as your enterprise morphs and changes in very volatile markets.
How Cannabis Equipment Leasing Works
Here's what we consider when determining if leasing is right for your business:
Types of Equipment We Finance:
Types of Equipment We Finance:
Real Estate Finance for Cannabis Properties
Acquisition Financing: We finance the purchase of commercial buildings for production and retail in the Cannabis space, typically at 65% LTV.
Money Out Re-Fi: Liquidity has become critical for many Cannabis companies. Unlocking the Cash Value in your real estate can save the day and produce much needed cash quickly.
Sale-Leasebacks: Established companies can often sell their facility to a purchaser who will turn around and provide a long-term lease at an agreed cap rate. This can unlock capital tied up in equity.
Land & Construction Loans: We can provide a complete Real Estate financing package for land acquisition, construction and take-out.
Most real estate loans in the Cannabis Industry are Interest only for two years with some extension options. Interest rates are between 9.5% - 12% with closing points dependent on size and underwriting. Personal Guaranties are generally required.
About MJ Leasing Founders
MJ.Lease is a California based equipment finance company servicing licensed cannabis businesses nationwide in legal states. Allen Gold and Nicholas Willson, the Co-Founders, are both experienced, senior, asset-based lenders and investment banker. Unlike many lenders, Allen and Nick have spent their careers as entrepreneurs, facing the same types of challenges in financing and operating businesses as you are facing. We have seen or done almost everything in the finance business during our varied careers; turning around ailing companies, advising on mergers or acquisitions, funding start-ups and have 50+ years of combined experience in the leasing and asset-based lending business!
MJ.Lease finances worthy companies that cannot qualify for financing in today’s commercial bank lending environment because of federal banking laws. We don’t evaluate based on traditional measures of profitability and credit history – we focus almost exclusively on the value of the equipment you want or already own.
With local offices in Los Angeles, Santa Barbara and the San Francisco Bay Area, no matter where your business is located you will receive personal attention and service from one of our experienced Principals. We are a small team and we take pride in being agile and responsive. Typically, we can fund an approved transaction within 2-3 weeks from the initial in-person meeting. We can lease equipment to companies with a value of $300,000 up to $3.0 million.
Allen has over thirty years experience in the Equipment Leasing and Commercial Finance business. Mr. Gold is an innovative and entrepreneurial financial services executive who has specialized in developing leasing and finance products for emerging markets. Mr. Gold was formerly the Chairman, CEO and principal owner of the Ally Group (“Ally”), a diversified asset management and venture investment company, that originated over $1 billion in secured lending transactions and employed 30 professionals.
In 1985, Mr. Gold founded Venturelease, as a division of Ally, one of the first equipment leasing companies to underwrite transactions for early stage venture capital-financed companies in Silicon Valley. In 1991 he founded the Environmental Allies Group of Funds, also a division of Ally that invested in growth-stage environmental technology companies and environmental project finance opportunities. He raised three funds with a total of $50 million in equity and made over 140 leveraged investments. Mr. Gold founded Critical Capital Corporation, a $30 million venture capital fund, licensed by the SBA as a Small Business Investment Company. Sands Brothers, a NYSE investment-banking firm, acquired Mr. Gold’s interest in 2001.
In recent years, Allen has worked in partnership with Mr. Willson (“Nick) on several ventures including an ongoing Asset-Based Lending business lending to small and medium sized businesses.
Nick is a highly experienced operator, who is also financially sophisticated and academically trained. He is known for being a keen business analyst, and an insightful strategist. During his 35 year career, both in the US and the UK, he has enjoyed success in several different sectors and roles. Mr. Willson has 2 separate Masters degrees, the first in electrical engineering from Oxford University, England, and the second, an MBA from Harvard University Graduate School of Business.
Mr. Willson held senior positions at the international strategy consulting firm, McKinsey & Company, and also the predecessor venture capital firm of APAX Partners, both in London. Since 1990, Nick has been President or CEO of several substantial Silicon Valley companies, including Party America, a chain of stores ultimately sold to Party City, and DEXIS, a dental digital radiography firm, successfully built and then sold by Mr. Willson and his partner in 2005 for cash to Danaher Corporation, a Fortune 200 company.
As an Angel investor with The Angels Forum, a prominent early-stage investing group in Silicon Valley, Mr. Willson has personally invested in approximately 25 high growth companies across several industries, including technology, medical device, retail, distribution and software, with several successful liquidations including Penumbra (IPO) and Taulia (recapitalization). He has evaluated hundreds of business plans, presentation decks and management teams during this period.
Current MJ Cannabis Leasing Projects
Award winning Cannabis manufacturing company producing vape pens, cartridges and pre-rolls. $1.2 million in equipment (new and refinanced)
Multi–location Cannabis testing lab. Refinance of all existing equipment and one new facility. $1.0 million.
Premium Cannabis cultivator selling branded flower product. $1.0 million for delivery vans, CO2 extraction, shredding, packaging, pre-rolling and other equipment (new and refinanced)
Start-up hemp biomass extraction facility, sole provider in State; ethanol recovery, Pope distillation, Filtration system, freezers. $800,000 in new equipment.