head shop funding — mellow

mellow is not a lender and does not underwrite or approve anything itself. we review your details and work to connect you with funding providers who serve your category. terms and approval come from the provider, subject to underwriting.

know the business type, state, time in business, monthly business-bank-deposit range, requested amount, exact use, existing advances or loan payments, and timeline. use actual operating deposits rather than projected sales.

possible structures include bank or credit-union products, lines of credit, term products, equipment or inventory financing, and revenue-based financing. eligibility, cost, collateral, guarantees, repayment, and disclosures vary. a category list is not evidence that a product is available.

no. the public inquiry is not a secure document channel. do not submit bank statements, identification, tax records, account credentials, ownership documents, or supplier records unless an appropriate counterparty and secure process have first been verified.

compare the amount received, total payback, payment amount and frequency, term or estimated duration, reconciliation rights, collateral or receivables involved, personal guarantees, prepayment and default provisions, broker compensation, and required state disclosures.

no — nothing is approved until a provider underwrites your file. what you qualify for depends on your deposits, time in business, existing obligations, product mix, and state. the inquiry is how we find out which providers fit.

sometimes, but credit is one of several screens and the category is another. revenue-based providers weigh business-bank deposits, deposit consistency, negative days, and existing obligations ahead of a personal score, though most still pull credit and hold a minimum. for a head shop, a strong credit file does not override a provider that excludes paraphernalia retail by policy, and a weak one narrows an already short list. bank, credit-union, and SBA-backed products apply tighter standards on both counts. mellow does not review credit or make decisions; a provider does, subject to its own underwriting.

that is a provider's decision after underwriting, not something to price in advance. revenue-based providers commonly size an offer from average monthly business-bank deposits over a recent period, then reduce it for existing advances, negative days, and uneven deposits. shops with a large share of revenue in categories that federal law is about to change may see providers discount the recent months rather than read them at face value. bank and credit-union products look at time in business, credit, collateral, and payment coverage instead. know your deposit range, your current payments, and the exact amount and purpose before applying.

not for every product, but time in business is an early screen. many revenue-based providers want at least 3 to 6 months of operating history and business-bank statements; bank, credit-union, and SBA-backed products usually want 2 years or more. the screen runs on the legal entity and the business bank account, so a store that changed hands or reorganized may read as newer than the storefront looks. if you are close to a threshold, a few more months of steady deposits generally widens the set of products you can compare rather than changing any single answer.

some will, and that is a category policy rather than a judgment about the business. many banks and payment processors classify paraphernalia retail as restricted or prohibited, which is why a profitable shop with clean deposits can still be turned away without its numbers being read. providers that do work in the category underwrite the same things they underwrite anywhere: deposits, consistency, existing obligations, time in business, and ability to repay. what helps is knowing which door you are knocking on before you authorize a credit pull, and asking any intermediary whether the category is actually accepted by the provider they intend to send the file to.

revenue-based providers often decide within 1 to 3 business days of a complete file; bank and credit-union products commonly take weeks. the file sets the pace more than the category does. missing statement pages, unexplained deposits, an undisclosed existing advance, or an application that does not match the bank record all add days. treat a stated timeline as an estimate rather than a commitment, since funding is subject to underwriting and mellow does not control provider timing. if a supplier window or a lease deadline is driving the request, say so at the outset so slower and cheaper options can be compared fairly.

yes, through merchant cash advances. banks decline head shops on sight — the paraphernalia association ends the conversation before your numbers get read. mca funders work differently: they underwrite your bank deposits, not your store name. a funder purchases a share of your future receivables for a lump sum now. we work with the funders who already approve paraphernalia retail, typically placing $10K to $500K with decisions in 24-72 hours.

category policy. most banks classify paraphernalia retail as prohibited or restricted, the same way they treat smoke shops and vape stores. the federal paraphernalia statute — even though your inventory is sold lawfully for tobacco use — puts the whole category on compliance blacklists. it has nothing to do with your revenue or your credit. specialty funders exist because this gap is wide and permanent.

not to the specialty funders. glass-forward stores are a known, underwritable category in our network. what funders read is your bank statements: deposit volume, consistency, negative days, existing positions. a shop doing steady deposits selling glass and accessories underwrites the same as one selling packaged goods. if anything, glass helps right now — it is one of the categories fully untouched by the federal hemp ban.

yes, and timing matters. the federal ban takes effect november 12, 2026, and funders underwrite your trailing 3 months of deposits. applying while hemp revenue still shows in your statements gets you a stronger offer than applying after the drop. shops are using this capital for deeper glass inventory, kratom and kava expansion, compliant CBD lines, and bridging payroll while the new mix scales.

specialty funders offer $10K to $500K, and most head shop deals land between $20,000 and $60,000. the driver is monthly deposit volume and consistency, adjusted for any existing advances. shops with a strong hemp season behind them sometimes qualify for more than their current plans need — worth considering, since the same file may support less after the ban-driven dip.

no. a merchant cash advance is a purchase of future receivables, not a secured loan — there is no equipment lien on your glass cases and no real estate pledge. funders typically file a UCC lien on business receivables, and most agreements include a personal performance obligation for the owner — standard across the industry. read the agreement and ask us about anything in it; walking you through terms is part of the job.

often, subject to underwriting. several specialty funders take second positions and a few take thirds. the real question is whether your deposits support another payment after your current one — especially heading into the hemp transition, when revenue may dip. we run that math with you first. if a second position would squeeze the shop, we say so and talk about renewal timing instead.

3 months of business bank statements, a one-page application, and your ID. that is the whole initial file. we usually come back within a business day with either offers, questions, or a straight answer that the file is not placeable yet and what would change that. no application fee, no obligation on offers.

yes. paraphernalia and tobacco accessory rules vary by state and city — licensing, zoning, what can be displayed — but none of that stops a shop from being funded. specialty funders covers all 50 states. what changes by state is mostly paperwork: several states require standardized cost disclosures with any financing offer, which means you see the full payback in writing before signing.

almost never from a bank — federal paraphernalia law makes the category one of the most declined in retail, and many head shops struggle just to keep a bank account. specialty funders underwrite the actual deposits instead of the category label. typical decisions in 24-72 hours, funded amounts $10K to $500K, subject to underwriting.