Crop Haven™ uniquely and immediately advances funds against any sales invoice to approved customers for cannabis, cannabinoid or hemp, repayable at sensible rates and terms to minimize cash-flow drain.
Crop Haven’s™ Sensible Advance™ resolves cash flow management for rapidly growing companies in the cannabis industry, to resolve the timing gap between plantings or clones and getting paid in full – which can sometimes be many months.
Crop Haven’s™ Sensible Advance™ is available for any indoor or outdoor, hemp, cannabis, cannabinoid, CBD or vape producer – without limitation as to the THC content, provided sufficient product liability, recall and defense coverage is in place.
Approved invoices are pledged or assigned to Crop haven’s funding partner as collateral in return for receiving an advance against the invoices. These invoices are the property of the grower or producer, rather than Crop Haven’s™ partner lender – without the lender interrupting the direct communication.
Approved invoices are assigned to Crop haven’s funding partner in return for receiving an advance of up to ninety percent (90%) against the invoice amount. The remainder of the invoice amount is held in reserve, and paid minus the cost of interest and fees, when the customer pays the invoice in full.
Cannabis and hemp growers and producers selling to any licensed producer, dispensary or government entity can receive payment for invoiced amounts and/or accounts receivable, based on the purchaser’s creditworthiness.
If invoice factoring is chosen, Crop Haven’s™ funding partner actually buys every invoice it approves, at a discounted rate, unlike the line of credit, where approved invoices are pledged or assigned as collateral for the advance.
Unlike a bank line of credit, the funding potential through Crop Haven’s™ Sensible Advance™ is only limited by the cannabis company’s sales – and there is no need to apply for extensions when business picks up – the only requirement is sufficient, approved open invoices.
Additional liquidity is available by leveraging inventory to maximize access to capital that otherwise could not be obtained through a traditional facility. No Inventory-to-A/R ratio limitations. Minimum revenue: $5MM. Advances up to 90% of Net Orderly Liquidation Value or up to 70% of inventory cost.
Crop Haven™ offers Sensible Advance™ through its exclusive funding partners for cannabis, hemp, indoor and outdoor facilities, at cash flow sensible rates and terms, for maximization of cash flow and ‘pain-free’ fiscal obligations. Interest is accrued until the invoice is paid, on the entire invoice.
Crop Haven’s™ Sensible Advance™ relocates all the typical risks associated with payments due from a third party to its direct funding partners, as well as the risk of managing cash flow where payments can typically take months.
Crop Haven™ prepares a compelling, investment grade client overview, and manages and responds to all due diligence requests from its funding partner – handling the majority of effort and heavy lifting typically required of clients.
