LeafLink Financial Closes $250M In Debt Financing

LeafLink announced Wednesday that its supply chain financing solution, LeafLink Financial, received a $250 million senior secured credit facility from a private commercial lender.

This investment is one of the largest debt financing deals ever completed in cannabis.

LeafLink Financial will provide capital to licensed businesses in the form of on-demand liquidity options, supporting the entire cannabis supply chain by empowering the growth and stability of the industry as a whole.

This “liquidity as a service” offering will be accessible directly via LeafLink’s B2B marketplace.

“This deal marks a new chapter for the LeafLink community," LeafLink Financial executive VP Doug Gordon, said.

About LeafLink Financial

LeafLink, the cannabis industry’s wholesale marketplace, built LeafLink Financial to address the cannabis industry’s challenges regarding B2B transactions and access to capital. The platform tackles the obstacles of demanding regulations and limited access to basic financial services by eliminating costs and optimizing cash flow for licensed cannabis operators across the U.S.

Brands and distributors can assign invoices to LeafLink Financial to receive upfront payments, broadly extend net terms for retail customers, receive payment via ACH, and digitally reconcile invoices. Retailers can benefit from the flexibility of net terms, centralized accounts payable, and cash flow management tools.

He noted that, for years, the cannabis industry has lacked the financial tools needed to operate a thriving business.

“That’s why we built LeafLink Financial - to inject liquidity directly into the industry, and help our customers optimize their cash flow," Gordon said. "Now, brands and distributors can increase the purchasing power of their buyers by offering legitimate trade credit, count on upfront payments by assigning invoices to LeafLink Financial, and receive funds via ACH rather than cash."

Retailers will have access to flexible net terms, centralized accounts payable, and the luxury of built in cash flow management tools, he added.

Lead image by Ilona Szentivanyi. Copyright: Benzinga.