LeafLink Closes $250 Million Credit Facility

Cannabis wholesale marketplace, LeafLink announced that its cannabis supply chain financing arm LeafLink Financial has closed a $250 million senior secured credit facility with a private commercial lender. The company said that the capital will be used to provide liquidity directly to licensed businesses. 

“We are excited to announce this milestone – it’s a huge leap forward for the cannabis industry, and marks a major advancement in the way LeafLink is able to serve and support our community,” said Doug Gordon, EVP and Head of LeafLink Financial. “As the cannabis industry’s wholesale marketplace, we are in the ideal position to support our customers with the liquidity they need to efficiently run their businesses, and closing this facility allows us to accomplish just that.”

The cannabis industry has always struggled with access to capital due to the legal nature of the product. LeafLink Financial said it is able to offer an on-demand liquidity option for the $2.8 billion in orders placed annually on LeafLink’s wholesale marketplace, which represents an estimated 30% of all US wholesale cannabis. 

LeafLink Financial is LeafLink’s proprietary digital supply chain financing product. Customers that assign invoices to LeafLink Financial, brands and distributors can rely on upfront payments, broadly extend net terms to their retail customers, receive payment via ACH, and digitally reconcile invoices. The company said that retailers benefit from access to the flexibility of net terms, centralized accounts payable, and cash flow management tools. 

 

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