Equipment Financing
Cannabis Equipment Financing — Specialized Lenders
Axiant Partners works with specialized cannabis equipment lenders for extraction systems, grow lights, HVAC, packaging, and complete facility buildouts. Licensed operators in legal states only.
- ✓ CO2, ethanol, and hydrocarbon extraction
- ✓ LED grow lights and HVAC systems
- ✓ Packaging and trim equipment
- ✓ Licensed operators in legal states
- ✓ Decision in 24–48 hours
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Cannabis Equipment Financing — Extraction, Processing & Grow Facilities
Extraction systems ($15K–$500K+), trim machines, drying equipment, LED grow lights, HVAC, and packaging — with specialized lenders where traditional banks won't lend due to federal Schedule I status.
Key Facts: Cannabis Equipment Financing
- Extraction Systems: $15,000–$500,000+ (CO2, ethanol, hydrocarbon)
- Trim Machines: $2,000–$25,000 | Drying/Curing: $5,000–$50,000
- Packaging Equipment: $15,000–$150,000 | LED Grow Lights: $500–$2,000 per fixture
- Commercial Facility Lighting: $50,000–$500,000 | HVAC/Environmental: $20,000–$200,000
- Banking Reality: Most federally chartered banks decline cannabis lending
- Rate Premium: 15–30%+ above conventional equipment financing
- Requirement: Valid state cannabis license (cultivator, processor, or dispensary)
The Cannabis Equipment Financing Challenge — Federal vs. State Law
Cannabis is legal in some form in 38+ states, but it remains a Schedule I controlled substance under federal law — placing it in the same category as heroin. This creates a fundamental financing problem: virtually all banks and credit unions are federally chartered or federally insured, and lending to a federally illegal business puts their charter, FDIC insurance, and regulatory relationships at risk.
The practical result is that most conventional equipment lenders — bank-affiliated finance companies, SBA lenders, captive OEM lenders — cannot and will not finance cannabis equipment. This has created a specialized market of private credit funds, non-bank equipment leasing companies, and cannabis-focused financial services firms that operate outside the federal banking framework.
The good news for cannabis operators is that this specialized market has grown substantially since 2018. Competition among cannabis lenders has driven rates down from the 25–40% range seen in 2018–2020 to a more typical 12–20% range for established, licensed operators with clean financials in 2024. The equipment itself — particularly industrial extraction systems and commercial LED lighting — has enough commercial applications outside cannabis that some mainstream equipment lessors will finance it if the collateral can be described and valued in non-cannabis terms.
Cannabis Extraction Equipment — Prices and Financing
| Extraction Type | System | Price Range | Output Capacity | Notes |
|---|---|---|---|---|
| Rosin Press | Mechanical press | $2,000–$20,000 | Small batch | Solventless, no licensing req. |
| Rosin Press — Industrial | Hydraulic press | $20,000–$50,000 | 20–50 lbs/day | High-quality concentrate |
| Ethanol — Small | Delta Separations, Precision | $15,000–$60,000 | 50–200 lbs/day | Class C1D1 room required |
| Ethanol — Mid-Scale | Delta Separations CUP-30 | $60,000–$150,000 | 200–1,000 lbs/day | Most popular commercial choice |
| Ethanol — Large | Precision PX100+ | $150,000–$300,000 | 1,000+ lbs/day | High-volume extraction |
| CO2 — Small | Apeks, Waters | $50,000–$120,000 | 5–20 lbs/day | Clean extract, easiest to finance |
| CO2 — Commercial | Apeks Supercritical | $120,000–$300,000 | 20–100 lbs/day | Medical-grade extract capability |
| CO2 — Industrial | Waters, custom builds | $300,000–$500,000+ | 100+ lbs/day | Pharmaceutical-grade |
| Hydrocarbon (BHO/PHO) | Precision, Terpp | $20,000–$150,000 | Varies | Explosion-proof room required |
Trim Machines, Drying & Curing Equipment
| Equipment | Type | Price Range | Throughput | Brands |
|---|---|---|---|---|
| Trim Machine — Manual | Bowl trimmer | $2,000–$6,000 | Small batch | Twister, CenturionPro |
| Trim Machine — Auto | Wet/dry trimmer | $6,000–$18,000 | 10–50 lbs/hr | Twister T4, CenturionPro |
| Industrial Trimmer | Commercial auto | $18,000–$25,000 | 50–150 lbs/hr | Mobius M108S |
| Drying Rack System | Modular racks | $5,000–$20,000 | Per room | Various |
| Climate-Controlled Drying Room | Full room setup | $15,000–$50,000 | Per facility | Custom build-out |
| Freeze Dryer | Lyophilizer | $20,000–$80,000 | Per batch | Harvest Right, SP Industries |
| Curing Vault | Environmental control | $8,000–$30,000 | Per facility | Custom |
LED Grow Lights and HVAC — Commercial Facility Costs
Lighting and HVAC are the two largest ongoing operational costs for indoor cannabis cultivation — and they represent major capital investments at facility buildout. LED technology has largely replaced high-pressure sodium (HPS) lighting in modern cannabis facilities due to lower heat output, higher efficiency, and better spectrum control.
| Equipment | Unit Size | Price Per Unit | 5,000 sq ft Facility Est. | Brands |
|---|---|---|---|---|
| LED Grow Fixture — Entry | 600W–800W | $500–$900 | $60,000–$140,000 | Gavita, Spider Farmer |
| LED Grow Fixture — Commercial | 1,000W–1,200W | $900–$1,500 | $120,000–$250,000 | Fluence, Gavita Pro |
| LED Grow Fixture — Premium | 1,500W+ | $1,500–$2,000+ | $200,000–$350,000 | California Lightworks, Fluence |
| HVAC — Per Ton | 5–20 ton units | $2,000–$5,000/ton | $80,000–$200,000 | Daikin, Mitsubishi |
| CO2 Supplementation | Per room | $3,000–$12,000 | $15,000–$60,000 | Custom |
| Fertigation System | Per facility | $8,000–$50,000 | $8,000–$50,000 | Dosatron, Priva |
Conventional vs. Cannabis Equipment Financing — Rate Comparison
| Factor | Conventional Equipment | Cannabis Equipment (Specialized Lenders) |
|---|---|---|
| Typical Rate — Established Business | 6–10% | 12–18% (lenders available) |
| Typical Rate — Startup | 9–14% | 18–28% (licensed operators) |
| Down Payment | 0–10% | 10–25% typical |
| Bank/Credit Union Access | Yes — wide market | No — federally chartered lenders decline |
| SBA Loan Access | Yes — 7(a), 504 available | No — SBA declines cannabis |
| Lender Pool Size | Hundreds of lenders | Dozens of specialized lenders |
| Lease Options | Wide availability | Limited but available |
| License Requirement | No | Yes — valid state license required |
| Collateral Realization | Easy repossession/resale | Harder — cannabis-specific equipment |
Cannabis Packaging Equipment
Packaging is a compliance-driven necessity for cannabis operators — child-resistant packaging, tamper-evident seals, and state-mandated labeling are legal requirements that drive equipment investment. Packaging equipment ranges from manual countertop units for small dispensaries to high-speed automated lines for large producers.
| Equipment | Price Range | Output | Notes |
|---|---|---|---|
| Manual Filling Station | $1,500–$8,000 | Low volume | Flower and pre-roll manual fill |
| Semi-Auto Pre-Roll Machine | $5,000–$25,000 | 100–500/hr | Joint and cone filling |
| Auto Pre-Roll Machine | $25,000–$80,000 | 500–2,000/hr | High-volume dispensary supply |
| Child-Resistant Packager | $15,000–$60,000 | Per machine | Compliance-driven requirement |
| Tincture Filling Line | $20,000–$100,000 | Per line | Liquid cannabis products |
| Edible Packaging Line | $30,000–$150,000 | Per line | Gummies, chocolates, infused products |
| Label Applicator | $3,000–$20,000 | Per machine | Required for all products |
Ready to Finance Cannabis Processing or Grow Equipment?
Get connected with specialized lenders for licensed cannabis operators — extraction systems, LED lighting, HVAC, and packaging equipment.
Frequently Asked Questions — Cannabis Equipment Financing
Why won't most banks finance cannabis equipment?
Cannabis remains a Schedule I controlled substance under federal law, making it illegal at the federal level regardless of state legalization status. Federally chartered banks and credit unions risk their charters, deposit insurance, and regulatory standing if they knowingly provide banking services — including loans — to cannabis businesses. Most large and regional banks refuse cannabis financing entirely. Specialized cannabis lenders, private credit funds, and equipment leasing companies not subject to federal banking charters have stepped into this gap.
What interest rates can I expect on cannabis equipment financing?
Cannabis equipment financing typically carries a 15–30% premium over conventional equipment financing rates. Where a conventional equipment loan might be priced at 7–9% for a qualified borrower, cannabis-specific equipment financing commonly runs 12–18% for established, licensed operators. Startups and operators in newer legal markets may see rates of 18–28% or higher. The premium reflects the federal legal risk borne by the lender, limited secondary market for cannabis-specific equipment, and regulatory uncertainty. Rates have been gradually declining as the legal cannabis market matures.
What cannabis extraction systems are available and what do they cost?
The main cannabis extraction technologies are CO2 extraction ($50,000–$500,000+), ethanol extraction ($15,000–$300,000), hydrocarbon (BHO/PHO) extraction ($20,000–$150,000), and rosin press mechanical extraction ($2,000–$50,000). CO2 systems from companies like Apeks Supercritical or Waters are the most expensive but produce the cleanest extract and are generally easier to finance (the equipment has industrial applications outside cannabis). Ethanol systems from Delta Separations are mid-market. Hydrocarbon systems require explosion-proof rooms, adding facility cost.
How much do commercial LED grow lights cost for a cannabis facility?
Commercial LED grow fixtures for cannabis range from $500 to $2,000 per fixture depending on wattage, spectrum, and brand. A 5,000 square foot canopy facility with fixtures spaced every 4x4 feet requires approximately 312 fixtures — at $800 average that's $250,000 in lighting alone. LED lighting can be financed as part of a complete facility buildout or as a standalone equipment loan. Many LED manufacturers (Fluence, Gavita, California Lightworks) offer financing programs through third-party lenders.
Can cannabis equipment be leased instead of purchased?
Yes. Equipment leasing for cannabis is available through specialized cannabis equipment lessors. Leasing has advantages in this industry: lower upfront capital, ability to upgrade as technology improves, and potential off-balance-sheet treatment. Some extraction equipment companies (particularly CO2 equipment suppliers) offer lease-to-own programs to bypass banking restrictions. True operating leases with FMV buyouts are available but less common — most cannabis equipment financing is structured as a capital lease or conditional sale.
What documentation do cannabis equipment lenders require?
Cannabis equipment lenders require: (1) valid state cannabis license (dispensary, cultivator, processor, or all-in-one), (2) 2 years of business tax returns or 2 years of business bank statements, (3) business financial statements or P&L, (4) personal guarantee from principal owners, (5) business formation documents, and (6) description of equipment being financed. Some lenders also require proof of compliant cash management and a copy of the state's compliance inspection report. Stronger documentation packages yield better rates.