Ziel Now Offering Financing and Leasing Options for Cannabis Cultivators
Change moves slowly at the federal level, especially if cannabis is involved. Since the first recreational market opened in 2012, not much has been done for the industry or its financial situation, although some recent efforts have been made. For example, the U.S. House of Representatives passed the SAFE Banking Act seven times since 2019. The Senate Banking Committee passed its SAFER Banking Act in September 2023. Even the Department of Health and Human Services (HHS) recommended cannabis be rescheduled to Schedule III in August of 2023. Yet, cannabis cultivators are still struggling to find financial backing and continue to carry the weight of 280E, hurting cash flow.
To address this situation and help cannabis cultivators boost their bottom line with minimal upfront cash outlay, Ziel is pleased to announce partnerships with multiple financial institutions that have an established presence in the cannabis industry. Zie identified these direct lenders to provide our customers with a cost-effective means to finance or lease the safest cannabis remediation technology on the market—the Ziel RFX.
Using Radio Frequency (RF), the Ziel RFX decontaminates whole flower and trim to deliver a greater than 99% regulatory compliance pass rate. On average, the Ziel RFX recovers $1.1 million annually for each of its clients.
Read on to see how much revenue the Ziel RFX can recover for you and how you can secure yours with the help of our financial partners.
Financing Ziel RFX
Financing your Ziel RFX allows you to own your machine on day one. Along with your machine, you’ll get our Service Plan free for a year which includes:
- Bumper-to-bumper warranty
- Online Dashboard that provides access to all your COA data and processing parameters
- Consults with our engineers and scientists to optimize your post-harvest operations
You have the option to extend both the Service Plan and warranty once your financing term is completed.
We will facilitate the financing with our partners for no extra charge. Learn more about what’s needed to finance your Ziel RFX here.
Leasing Ziel RFX
Leasing your Ziel RFX allows you all the benefits of owning a machine but with the flexibility to walk away at the end of your lease term. Additionally, leasing offers the advantage of conserving your cash upfront. The out-of-pocket spend on day one of leasing your Ziel RFX is a little more than 5% of the out-of-pocket spend that comes with purchasing the machine outright.
Our partners offer lease terms as short as two years and as long as five years, giving you the flexibility to set terms that work with your business goals and projections. If you do decide you want to continue using RF as your preferred microbial control solution, you have the option to purchase your Ziel RFX for $1.00 at the end of your lease term.
With your lease, you’ll also get our Service Plan included for the duration of the entire lease, so you can operate your business with confidence. Similar to our financing option, we’re happy to negotiate your lease terms for you at no extra cost. Click here to read more about what’s needed to lease the Ziel RFX.
Buying Ziel RFX
There is always the option to buy your Ziel RFX outright. Like our financing and leasing options, a one-year bundled Service Plan is included in the purchase price.
Purchasing your machine allows you to immediately incorporate it into your standard operating procedures (SOPs), plus you become eligible to be one of our Authorized Tolling Partners and provide microbial reduction services to smaller and mid-size operators in your area.
Which Option Is Best For Your Cannabis Business?
To help you determine the best payment terms for your situation, we’re also excited to announce the release of our updated Business Case Calculator that incorporates leasing and financing options. Use it to quickly and easily determine if you have a worthy business case to justify moving forward with an investment in the Ziel RFX.
Using our Business Case Calculator, you can input and adjust your:
- Current harvest volume per year
- Percentage of harvest that fails microbial testing
- Wholesale pricing for dried flower and trim
From there, you can select your inputs (interest rate, down payment, and term) to evaluate what your monthly out-of-pocket payment will be for either leasing or financing.
Financial Advantages of Working With Ziel
Apart from our financing and leasing options for cannabis cultivators, and the average $1.1 million each of our customers recovers in lost revenue each year, there is another potential bottom-line benefit to the Ziel RFX. You may be able to depreciate your machine each year to reduce your taxable income.
This will require review with your accountant and financial advisors, but with the Ziel RFX as a part of your SOPs, you may have the option to claim its depreciation under your costs of goods sold (COGs). This could reduce the amount of taxes your business must pay under 280E.
Get Started with Ziel RFX
Explore our Business Case Calculator to determine your optimum financial solution. If you have questions or are curious about how to get started with your financial application for the Ziel RFX, get in touch with us today. We’re happy to help you narrow down the right financing or leasing option for your operation.