CBD sales companies: financing and assistance available in France

As of 2022, it has become possible to market CBD in France provided that its THC content does not exceed 0.3%. However, despite a very clear legal framework, traditional banks remain attached to the controversial image that cannabis, from which CBD is extracted, can convey.

As a result, many so-called "traditional" banks do not support the financing of CBD sales companies, refusing to open accounts or grant access to bank loans.

In this challenging environment, it is imperative for entrepreneurs to prepare their funding applications with care: 

• Market study mentioning the project's potential, 
• study of demand and proposed supply, 
• study of pre-existing competition, 
• development of the envisaged positioning,

Everything must be detailed to enable the funding organization to assess the seriousness of your project.

The business plan and presentation of your project must also reassure your interlocutor about the regulatory compliance of your project and your knowledge of the legal framework to be respected.

> See also: CBD regulations in France: what professionals need to know

Sources of financing available to a CBD company

Traditional and online banks

As explained above, traditional banks may be reluctant to finance CBD sales companies, but some institutions may be willing to support you, provided you present a solid business plan and concrete guarantees. You should also consider online banks, which are generally more open to opening business accounts. However, when it comes to loans, you will need to be convincing.

Private investors and venture capital

Both solutions are consistent and suitable for high-potential projects. To use them, turn to players who are sensitive to the health and wellness sectors, promoting the benefits of CBD to consumers.

Once again, a clear and promising business plan will be invaluable in convincing your investors. 

Crowdfunding

Crowdfunding is an effective way to raise funds from an online community and promote your future business to potential consumers. The drawbacks: communication costs to raise awareness of your campaign, and the need to actively promote the campaign to raise funds.

Public assistance

If your project is part of a sustainable approach or is based on organic farming, specific aid may be available to you. For more information, visit the Cedef website (Centre de documentation Économie Finances) website, which lists all national and local public aid available to support project leaders. 

Business incubators

Some business incubators focused on innovative sectors can provide financing solutions, as well as strategic support and access to a network of professionals to help make the most of this financing.

Maximizing your chances of financing: best practices

While financing for your CBD business may be difficult to obtain, it is by no means impossible. However, it must be based on several pillars: 

- A solid application, including an executive summary, projected income statements for three years, a cash flow plan for 24 months, a projected balance sheet, details of planned investments, a plan for using the requested funds, and a break-even analysis.

• Documents proving the compliance and traceability of your products: invoices issued by your suppliers and the results of analyses of your products to ensure their THC content complies with regulations are essential to reassure investors.
• Proposing an alternative scenario: a sign of realism, proposing an optimistic scenario and an alternative scenario allows your interlocutor to be sure that you have considered all the possibilities for your project, taking into account market uncertainties.

Thitan supports you in setting up your CBD sales business. We offer a wide selection of high-quality products of high quality, in compliance with French and European legislation and supplied with all the documents necessary to guarantee their traceability.