Home » financial sin stocks » Cannabis Lenders: Are They The Next Sin Stock?

Every business needs capital to start. For most businesses—for businesses that AREN’T sin stocks (and even for some businesses that are sin stocks)—it’s usually a matter of going to the bank for a loan…

… not necessarily simple but possible.

And then there are cannabis dispensaries.

Pot stocks are the newest sin stock and they are fighting for survival in a very complicated legal environment.

And new (privately held) companies like cannabis dispensaries try to grow and compete without the backing of IPOs and Wall Street money. These companies have not just federal and state laws to navigate the production of pot, they also have municipal laws as well, plus the social complexities of the city or town they are trying to set up in…

… and on top of that they need capital to start up. But banks won’t necessarily lend to them.

That’s where cannabis dispensary lenders come in. They are separate entities from the big banks (with big shareholders and deep pockets); they are (currently) private companies that make loans to start and run medical marijuana dispensaries. These companies exist right now (but none that we can tell are publicly traded).

But it likely won’t be long before we see more and more of these companies start and grow. After all, if companies can get past the red tape and legal footwork required to lend to cannabis dispensaries then there is an opportunity here.

We already have a financial sin stock category and a marijuana sin stock category… could cannabis loan companies be the next big sin stock?

DISCLAIMER

Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.