Aspiring cannabis industry financiers need not fear potential losses due to borrower defaults, as there are savvy strategies to protect investments. Some key elements to consider include:
– Due diligence: Thoroughly research potential borrowers and their business plans to assess risk factors.
– Collateral: Secure the loan with tangible assets that can be liquidated in the event of default.
– Risk mitigation: Implement appropriate insurance policies or risk-sharing agreements to minimize potential losses.
By carefully implementing these strategies, investors can protect their investments in the cannabis industry and ensure they don’t go up in smoke.
You can read this full article at: https://geracilawfirm.com/navigating-the-highs-and-lows-of-financing-in-the-cannabis-industry-in-california/(subscription required)
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