Merchant Hash Advance

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Short on capital? Your business may benefit from a Merchant ‘Hash’ Advance. Restaurants, retail stores, and auto repair shops can easily obtain funding, but medical marijuana dispensaries need love too.

A few cannabis related deals have floated around the Merchant Cash Advance (MCA) industry before, but rarely do they close. At best they elicit a few chuckles from underwriters, who will likely make a few juvenile jokes before turning down a viable, serious, and legal business. The store owners walk away frustrated but neither side is to blame.

In states like New York, where many MCA powerhouses reside, marijuana of any kind is illegal. That makes the sale of it for medicinal purposes in states where it’s legal a foreign concept. We spoke to an underwriter of one Long Island, NY based MCA firm who shared this: “I’ve eaten dinner at a restaurant and I’ve bought flowers from a florist. I understand what makes both businesses tick. I’ve never been to, nor met anyone who has been to a medical marijuana dispensary. I don’t really know what the transaction is like, what risks they face, what their profit margins should be. It’s a big unknown. Is it easy for a dispensary to lose their license and suddenly go out of business? Are there laws that prohibit outside financing? Do we need to keep tabs on where they obtained their inventory from? We typically call a restaurant’s vendors prior to funding to ensure they’re in good standing. I would feel a little weird calling up a weed farm for a reference.”

And he’s not the only one that feels that way. Banks do too. Funding aside, evidence shows cannabis related businesses stuggle to fulfill basic needs such as opening a bank account or accepting credit cards. According to a report by, it’s not uncommon for their checking accounts to be closed without warning, sending the business scrambling for help elsewhere.

But the situation isn’t all grim. We interviewed Nick Emerson, the Managing Director of 420 Card Processing in Campbell, CA (420 CP), a firm that’s changing it all. 420 CP not only provides card acceptance services to medical marijuana dispensaries but can also connect them with access to capital.

Using the concept of MCA, 420 CP and their funding partner will provide actual loans based on credit/debit card processing volume It’s a joint partnership. (Sorry couldn’t resist!). And there’s great news. The typical easy criteria that made traditional MCAs so popular still applies. So long as the license to sell medical marijuana can be proven, dispensary owners have the same odds of being approved as a restaurant would.

So the oportunity is there and the target market is bigger than most people think. According to Nick, “Medical marijuana is legal in sixteen states and DC to the best of our knowledge. Those states are: AK, AR, CA, CO, DC, DE, HI, ME, MI, MT, NV, NJ (still pending), NM, OR, RI, VT and WA. Some of these states are in the throes of evaluating how to implement the ballot measures that were passed and they do not all enjoy the same structures.” But once the ground rules are in place, it’s business as usual. “We have faced no problems as our company is dedicated to providing credit card processing services solely to the medical marijuana industry.  As you can imagine, our clients love us.”

Add that to the ever growing list that the Mechant Cash Advance concept is being applied to.

  • Damaged Credit? Funded!
  • Short Time in Business? Funded!
  • Restaurants? Funded!
  • Retail Stores? Funded!
  • Auto Shops? Funded!
  • Las Vegas Casinos? Funded!
  • E-Bay Stores? Funded!
  • Medical Marijuana Dispensaries? Funded!

Short on capital? If you accept electronic payments, someone somewhere is willing to provide cash against those future sales. No matter what you do…

– The Merchant Hash Advance Resource


About 420 Card Processing

420 Card Processing was founded by card processing professionals, with decades of combined experience, who are committed to equal access and opportunity for those involved in all aspects of providing medical marijuana to patients in states that have legalized its use. 420 Card Processing provides services to retailers, wholesalers, suppliers of gardening equipment, and physicians. 420 Card Processing is a member of Americans for Safe Access, California NORML and the National Cannabis Industry Association.

For more information on obtaining a merchant account or funding from 420 Card Processing, contact Nick Emerson:

(800) 579-1675900 E. Hamilton Ave.

Suite 100

Campbell, CA 95008

Last modified: November 6, 2020
Sean Murray

Category: merchant cash advance, MPR Authored

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