This week, Mark welcomes Scott Jordan from the Alternative Finance Network to explore the unique landscape of alternative lending in the cannabis industry. Scott shares insights from his career journey, breaking down who the key lenders are and what makes alternative financing work for this fast-growing sector. From discussing the legal challenges at state and federal levels to predicting the industry’s growth to $100 billion by 2027, Scott offers a deep dive into cannabis financing and what the future may hold for businesses and lenders.

IN THIS EPISODE:

• [2:20] Scott shares a bit about himself and his career journey
• [4:41] Scott explains who the lenders are in the Alternative Finance Network and the risks and perceived risks
• [9:36] Who are the customers of Alternative Finance Network, and discussion and examples of exit strategies for those businesses
• [14:23] Discussion of federal and state legalities for providing financial services to the cannabis industry
• [20:30] How the lending environment changed since the availability is more widespread
• [23:25] Scott gives his predictions of where the cannabis business is going from the business and financial services side 

KEY TAKEAWAYS: 

• Alternative financing for cannabis-related industries comes from diverse sources, including cannabis-friendly banks, credit unions, leasing companies, and specialty lenders. Many of these funds ultimately trace back to banks or wealthy private investors, creating a network that enables specialized lending.
• In alternative lending, high interest rates can't compensate for risky investments with low repayment potential. Successful lenders look for market mismatches, where perceived risk is higher than actual risk, creating opportunities for smart, lower-risk lending.
• Scott predicts continued growth in the cannabis industry, predicting it will reach $100 billion by 2027. He anticipates gradual state-by-state legalization and eventual federal regulation, especially for safer, cashless payment solutions. They’re optimistic about expanding services, including mainstream credit card options and international market entry, and see social equity initiatives as pivotal for industry inclusivity and growth.

RESOURCE LINKS

Mark Ritter - Website

Mark Ritter - LinkedIn

Scott Jordan - LinkedIn

Alternative Finance Network - Website

Scott Jordan - Email

BIOGRAPHY: 

I created the Alternative Finance Network to serve marijuana and hemp business owners by providing one-stop shopping for all your cannabis loan needs. Whether it is financing real estate, equipment, working capital, or accounts receivable I have a funding source who can fund that loan AND get you the best possible rate and terms for your needs.