nFusion Capital, a provider of financing solutions to small and middle-market businesses, provided a $5 million asset-based facility to a Denver-based manufacturer and distributor of smoking accessories such as organizational rolling trays, papers, filters, and premium lifestyle goods. The financing will support extended payment terms for its largest customers and fund the development of proprietary manufacturing technology.
While experiencing rapid growth, the company sought a financing partner capable of supporting its long-term scale. Federal regulations and ongoing banking challenges within the cannabis industry have created working capital constraints for its distributors, prompting the company to extend longer payment terms to its largest customers. Additional working capital was also needed to install a new, innovative production line in its Denver facility, onshoring a key manufacturing process.
nFusion Capital structured a $5 million asset-based facility to provide immediate working capital while also supporting investment in developing key technology.
“Asset-based lending can be the perfect solution for cannabis industry banking constraints,” Jesse Baer, senior vice president of nFusion Capital, said. “This transaction reflects nFusion’s ability to support both operational growth and technological innovation that brings this process back from relying on labor intensive overseas processes. It’s extraordinary to be working with such innovative entrepreneurs and I can’t wait to see what the future brings.”
With this financing, the company is positioned to deepen relationships with its largest customers and improve cash flow predictability. The facility also supports the launch of a new manufacturing line, creating a clear pathway for continued growth.
“I’m personally thrilled to be working with nFusion Capital,” the company’s founder and CEO said. “They have provided the smart financial backing we needed to scale globally and keep innovating. Thank you to Jesse Baer for his sharp vision and leadership, and to nFusion’s Jennifer Mendoza and Anthony Fortunato for their expertise, professionalism, and genuine support that made this partnership seamless and powerful. nFusion truly understands growth in this space and delivers results.”
