FAQ — Green Grow Partners Cannabis Invoice Factoring

Question 1

What is invoice factoring?

Accepted Answer

Invoice factoring is a financial transaction where a business sells its outstanding invoices (accounts receivable) to a factoring company at a discount in exchange for immediate cash. Instead of waiting 30–90 days for your customers to pay, you receive up to 90% of the invoice value within 24–48 hours.

Question 2

How is factoring different from a loan?

Accepted Answer

Factoring is not a loan — it's the sale of an asset (your invoice). This means there's no debt added to your balance sheet, no monthly payments, and no interest accruing over time. Your approval is based on your customers' creditworthiness, not your own credit score or collateral.

Question 3

What happens when my customer pays?

Accepted Answer

When your customer pays the invoice, Green Grow Partners remits the remaining balance (typically 10%) minus our factoring fee, usually within one business day of receiving payment.

Question 4

Why do cannabis businesses need specialized factoring?

Accepted Answer

Most traditional factoring companies refuse cannabis clients due to federal scheduling, banking restrictions, and perceived regulatory risk. Those that do accept cannabis clients often charge punishing surcharges. Green Grow Partners was built exclusively for cannabis — we understand the industry's risk profile and don't penalize you for operating in it.

Question 5

Which states do you operate in?

Accepted Answer

We work with licensed cannabis operators in all states where adult-use or medical cannabis is legal. Contact us to confirm coverage in your specific state.

Question 6

Do you work with all cannabis license types?

Accepted Answer

We primarily work with cultivators, distributors, manufacturers, and other B2B cannabis operators. We require that both you and your customers hold valid state cannabis licenses.

Question 7

What is your advance rate?

Accepted Answer

We advance up to 90% of the face value of approved invoices. The exact rate depends on your industry segment, invoice terms, and customer creditworthiness.

Question 8

What are your factoring fees?

Accepted Answer

Our factoring fees range from 1.5% to 4% of the invoice face value, depending on the invoice term length and volume. All fees are disclosed upfront before you sign any agreement.

Question 9

Are there any hidden fees?

Accepted Answer

No. We charge a single, transparent factoring fee. There are no application fees, no monthly minimums, no termination fees, and no cannabis industry surcharges.

Question 10

How long does the application take?

Accepted Answer

The initial application takes about 10 minutes. We review applications within 4–8 business hours and can have your first funding completed within 24–48 hours of approval.

Question 11

What documents do I need to apply?

Accepted Answer

You'll need your state cannabis business license, copies of the invoices you want to factor, and basic business information. We may request additional documentation during underwriting.

Question 12

Is there a minimum invoice size or volume?

Accepted Answer

We don't have a strict minimum invoice size. We work with businesses of all sizes, from small craft cultivators to large multi-state operators. Contact us to discuss your specific situation.

Common Questions.

Invoice Factoring Basics

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