Featuring: Justin Chen, Merchant Growth Sr. Partnerships Manager
Running an independent cannabis retail business takes more than a great location and a strong product assortment. From managing inventory and covering operating expenses to preparing for seasonal demand and investing in growth, having access to the right capital can make a meaningful difference.
But for many independent retailers, accessing financing isn't always straightforward. Traditional lenders may not fully understand the cannabis industry, and business owners can find themselves relying on personal savings or even home equity to fund their operations.
That's where Merchant Growth comes in. As one of Canada's largest funding companies for small businesses, Merchant Growth has deployed more than $1 billion in capital since its founding in 2009. With a $240 million credit facility backed by Canadian financial institutions, including BMO, National Bank and EQ Bank, Merchant Growth provides financing solutions designed to help small businesses access the capital they need.
With years of experience supporting Canadian businesses, Merchant Growth also understands the unique challenges facing cannabis retailers and the importance of making financing accessible, straightforward and timely.
Financing That Works for Independent Retailers
Whether you're looking to increase inventory, invest in marketing, manage cash flow or take advantage of a new business opportunity, financing can help create flexibility without putting additional pressure on your personal finances.
Merchant Growth has worked with cannabis retailers to support a range of business needs, including larger inventory purchases, general working capital and growth initiatives.
Justin explains that many cannabis retailers have invested heavily in their businesses using personal savings or equity from their homes. "A lot of retailers have put their own personal funds, like savings or equity from their home, into opening their business." Having access to business financing can help retailers keep personal and business finances separate, preserve cash reserves and put capital to work where it's needed most.
A Simpler Application Process, With Responses in as Little as 6 Hours
For busy retail operators, time is money. Between managing staff, inventory, suppliers and day-to-day operations, navigating lengthy financing applications can be another burden.
Merchant Growth takes a streamlined approach, using business data and machine learning to evaluate applications and make funding decisions in as little as 6 hours.
The process includes:
A soft credit check on the business owner, which does not impact their credit score
A review of the business's six most recent months of banking history
An assessment of cash flow, expense management and overall business performance
Unlike traditional lending models that can place significant emphasis on personal credit scores, Merchant Growth looks at how the business is actually operating.
"We believe in supporting the underdog. Time is money for a small business owner, so we make it easier by using our 15+ years of data set and machine learning to quickly evaluate, make a decision and get the funds to a business owner ASAP."
One important consideration? Keeping your bookkeeping and financial records organized. Merchant Growth looks at how well a retailer manages cash flow and expenses, so having a clear picture of your business finances can help support the application process.
Cannabis-Friendly Financing That Understands Retail
Cannabis retailers face many of the same operational challenges as other independent retailers, but accessing financing can come with additional hurdles when lenders don't understand the industry.
Merchant Growth takes a different approach by evaluating cannabis businesses based on the fundamentals of retail operations, including inventory management, cash flow and seasonal business fluctuations. "We evaluate cannabis retailers like any other retailers, and I think that's why we have done so well in working with cannabis retailers."
Understanding how retailers manage inventory, prepare for busy periods and navigate slower sales cycles allows Merchant Growth to look beyond the industry label and focus on the health and performance of the business.
For independent retailers, working with a financing partner that understands the realities of cannabis retail can make the process more accessible and relevant to their needs.
Real Retailers. Real Growth Opportunities.
Every retail business has different priorities, and financing can play a different role depending on where a retailer is in their journey. Merchant Growth has worked with independent operators like Montrose Cannabis and Prairie Cannabis, helping them access capital to support their individual business goals.
For Montrose Cannabis, the opportunity was to build a broader inventory assortment that better served its local community and customer base. Financing helped the retailer make larger inventory purchases and keep up with demand.
For Prairie Cannabis, one of Saskatchewan's first 51 licensed cannabis retailers, financing offered a way to reduce reliance on personal funds.
After initially using personal savings to invest in the business, Prairie Cannabis was able to leverage Merchant Growth financing to keep more of those personal funds separate and available for other purposes. Both examples highlight how access to capital can help retailers make strategic decisions, whether that's investing in inventory, protecting personal finances or creating more room to grow.
Don't Wait Until You Need Financing to Explore Your Options
One of Merchant Growth's biggest recommendations for independent retailers is to explore financing before an immediate need arises. Having access to capital doesn't necessarily mean you need to use it right away. Instead, knowing what's available can help you plan ahead, prepare for unexpected expenses and move quickly when the right opportunity comes along.
"The best time to look for financing is when you don't need it. Just knowing you have access to funds allows you to better take advantage of upcoming opportunities as well as prepare for unexpected risks that could come about."
Merchant Growth also offers opportunities for returning customers to access additional funding after approximately three to four months, with potential access to a line of credit option. This can provide another avenue for retailers looking to manage ongoing business needs and plan for future growth.
Exclusive Financing Benefits for IRC Collective Members
Through the IRC Collective Member Benefits Program, independent cannabis retailers can access exclusive financing at a 3% discount with Merchant Growth.
Whether you're managing daily operations, preparing for a busy season, investing in inventory or planning a longer-term expansion, this member benefit is designed to make accessing business financing more affordable. With Canadian customer support and a team based across the country, Merchant Growth works with retailers from British Columbia to Quebec and beyond.
Ready to explore your financing options? IRC Collective Members can connect with Merchant Growth to learn more, explore available funding and take advantage of their exclusive 3% member discount.*
*Submitting an application does not guarantee approval or funding. All financing is subject to application review, approval and applicable terms and conditions.
This feature is part of the IRC Collective Member Benefits program, connecting retailers with trusted partners who help them grow smarter, faster, and stronger.