Cannabis Debt: Financing Options & 2026 Maturity Wall
Cannabis Creditor Priority & Recovery Waterfall
Estimate who gets paid first in a restructuring/liquidation-style scenario. Enter available proceeds, list creditor buckets in payment order, and see estimated recovery percentages.
How to use: Put creditors in the order you believe they would be paid. This tool is educational (not legal advice) and simplifies real-world priority disputes, liens, and state-specific tax rules.
Results
Net proceeds available
—
Total claims entered
—
Leftover / shortfall
—
| Bucket (order) | Type | Claim | Paid | Recovery |
|---|
The U.S. cannabis market has grown fast—but the balance sheets behind that growth are getting tight. As more loans come due and refinancing stays expensive, cannabis debt has become one of the biggest operational risks (and strategic opportunities) for operators heading into 2026. Multiple industry and legal analyses now describe a looming “debt wall,” with billions in maturities approaching and only a limited set of financing paths available.
This guide breaks down what’s driving the current debt crunch, the most common cannabis debt financing structures, and a practical, source-backed playbook for companies that need to renegotiate, refinance, or restructure before maturities hit.
The 2026 Cannabis Debt Maturity Wall: What the Numbers Say
Two separate industry narratives are converging on the same conclusion: a large portion of cannabis industry borrowing comes due by the end of 2026, and the biggest borrowers are under the brightest spotlight.
- $6 billion in debt maturing by the end of 2026, according to MJBizDaily’s reporting on a sector-wide “debt avalanche.” The same report notes the top five borrowers account for $3.4 billion, naming Curaleaf, Ayr Wellness, Trulieve, Cresco Labs, and Verano Holdings. (MJBizDaily)
- Blank Rome, in a legal and market-focused analysis, similarly characterizes a roughly $6 billion maturity wall by end of 2026 and also highlights that the top five multi-state operators account for about $3.4 billion. (Blank Rome)
- HBK frames the problem through another lens, citing up to $3 billion maturing by the end of 2026 and emphasizing how rising rates and other pressures make this cycle harder. (HBK)
These figures don’t have to conflict. They can reflect different datasets, definitions, and slices of the market (for example, which issuers, instruments, or maturities are included). What matters operationally is the shared signal: large maturities are concentrated among major operators, and refinancing decisions made now can determine who survives, consolidates, or exits.
Why concentration among top borrowers matters
When a small group holds a large portion of upcoming maturities, lenders, investors, and counterparties tend to scrutinize the entire sector through those outcomes. MJBizDaily points to the top five borrowers holding $3.4 billion of the coming maturities. (MJBizDaily)
That concentration can influence terms and availability for everyone else—especially when cannabis companies already face limited access to traditional capital, which Blank Rome links to the sector’s reliance on “costly debt.” (Blank Rome)
Why Cannabis Businesses Turn to Debt Financing (Even When It’s Costly)
Debt financing remains a core funding tool because it can provide growth capital without forcing founders and early investors to give up ownership. CannaBIZ Collects defines cannabis debt financing as borrowing capital from financial sources with an agreement to repay with interest over a set period—allowing businesses to access funding without diluting equity. (CannaBIZ Collects)
Order.co makes the same strategic point from a practical standpoint: debt can be appealing because it helps operators maintain full ownership while using future revenue to fund immediate needs or expansion. It also notes that cannabis companies may use private loans to secure funding without running into certain regulatory roadblocks. (Order.co)
What debt can fund in a cannabis operator
When used thoughtfully, debt can support projects that directly improve competitiveness. CannaBIZ Collects highlights that debt financing can provide capital for growth initiatives—such as expanding production capacity, improving marketing, investing in R&D, or entering new markets—while letting owners retain control. (CannaBIZ Collects)
Common Types of Cannabis Debt Financing (Pros, Cons, and Best Uses)
Not all debt is created equal. Structure, collateral, and repayment terms vary widely, and the “best” option depends on the operator’s cash flow visibility and asset base.
CannaBIZ Collects lists several common options available to cannabis businesses, including traditional cannabis bank loans, lines of credit, equipment financing, convertible notes, and private lending arrangements. (CannaBIZ Collects)
Bank loans and lines of credit
Where available, loans and revolving lines can support working capital needs and near-term growth. CannaBIZ Collects includes both cannabis bank loans and lines of credit among typical debt tools used by operators. (CannaBIZ Collects)
Equipment financing
Equipment financing is often matched to specific production or operational assets, which can make underwriting more straightforward than unsecured borrowing. It’s listed by CannaBIZ Collects as a standard debt route for cannabis businesses. (CannaBIZ Collects)
Convertible notes
Convertible notes blend debt with the possibility of converting to equity later under defined terms. CannaBIZ Collects includes convertible notes among available financing options, which can be useful when valuation is difficult to agree on today but capital is needed immediately. (CannaBIZ Collects)
Private lending (private loans)
Private loans are a commonly used solution in cannabis because they can bypass some institutional constraints. Order.co describes debt financing through private lenders (including angel investors) as borrowing money with a defined payback and interest schedule, noting cannabis companies may use this route to avoid regulatory roadblocks and keep ownership intact. (Order.co)
The Real Risks Behind Today’s Cannabis Debt Problem
Debt itself isn’t automatically “bad.” The current stress comes from timing, cost of capital, and uneven cash generation—especially as large maturities stack up into 2026.
Refinancing pressure and rising costs
HBK describes “a perfect storm” in which major operators are racing to refinance large debt loads in a more hostile environment and specifically calls out rising interest rates making refinancing more expensive. (HBK)
Cash burn makes maturities harder to negotiate
MJBizDaily highlights Verano as an example of why lenders focus heavily on cash performance. The outlet reports Verano had $403 million in debt, with $350 million due in October 2026, and that the company burned $19 million in cash in the first half of the year—which made it a prime candidate for early negotiation. MJBizDaily also notes Verano’s CFO said the company is in proactive refinancing discussions ahead of the 2026 due date. (MJBizDaily)
Restructuring can mean asset sales or market exits
Not every operator can refinance conventionally. MJBizDaily reports that Ayr Wellness, facing $368 million in debt maturing in 2026, announced a restructuring deal involving selling licenses in eight states to satisfy lenders and winding down remaining operations, after previously announcing plans to sell 97 stores across eight states. (MJBizDaily)
Operating headwinds squeeze available cash
HBK adds context on why cash can be tighter than stakeholders expect, citing continued Section 280E tax burdens draining cash flow and noting that failed state initiatives (it specifically references Florida’s adult-use measure) can remove anticipated revenue growth that may have been part of earlier debt assumptions. (HBK)
“This is going to involve a significant investment of time and legal expenses. Get some experts who have been through it before.”
— Finley, quoted in MJBizDaily (source)
A Practical Playbook to Navigate Cannabis Debt Before 2026
Managing cannabis debt is less about finding a single “best” instrument and more about preparation, credibility with capital providers, and choosing the least-damaging path early—before deadlines force rushed decisions.
1) Build a maturity map and start earlier than you think
MJBizDaily’s reporting underscores that companies are already moving ahead of 2026 maturities—Verano’s CFO described proactive refinancing discussions well in advance of the October 2026 due date. Treat that as a signal: the earlier you model options, the more leverage you keep. (MJBizDaily)
- List every facility, note, and term loan by maturity date.
- Identify which obligations mature inside 12–24 months.
- Prepare scenarios for refinancing, paydown, or restructuring tied to realistic revenue assumptions (especially if a state expansion thesis changed, as HBK notes can happen when initiatives fail). (HBK)
2) Lead with cash flow credibility
MJBizDaily reports Coniglio’s point that it’s important for cannabis companies to demonstrate they have cash flow so investors can reasonably expect repayment. In practice, that means your story needs to be provable in numbers—not just projections. (MJBizDaily)
- Document the cash drivers that make repayment plausible.
- Be prepared to explain cash burn trends (as highlighted in the Verano example). (MJBizDaily)
3) Match the financing tool to the business need
CannaBIZ Collects emphasizes that debt options come with different terms, rates, and repayment structures, designed for different needs. Use that framework to avoid borrowing short for long-term projects (or vice versa). (CannaBIZ Collects)
- Equipment financing for asset-backed expansion (listed as a common option). (CannaBIZ Collects)
- Lines of credit for working capital swings (also listed). (CannaBIZ Collects)
- Private lending when traditional channels are constrained, while keeping ownership intact—an advantage Order.co specifically notes. (Order.co)
4) Treat restructuring as a strategic option—not a last resort
MJBizDaily’s Ayr Wellness example shows that restructuring can involve meaningful asset sales and even winding down operations to satisfy lenders. While drastic, it illustrates a key point: if refinancing terms are unfavorable or unattainable, negotiating a controlled outcome may preserve more value than waiting for a deadline. (MJBizDaily)
5) Budget time and professional support into the plan
Debt negotiations can be complex, especially at scale. MJBizDaily’s quote from Finley explicitly warns of the time and legal expense involved and encourages bringing in experts who have “been through it before.” Plan for that reality early so the process doesn’t derail operations. (MJBizDaily)
6) Stay focused on the main benefit of debt: keeping control
CannaBIZ Collects frames one of the central benefits of debt financing as access to growth capital without sacrificing ownership stakes, and Order.co reinforces that debt is appealing because it helps maintain full ownership. If you’re weighing debt versus equity under pressure, anchor the decision in what you’re trying to protect: control, time, and the ability to execute. (CannaBIZ Collects) (Order.co)
Frequently Asked Questions
What is cannabis debt financing?
CannaBIZ Collects defines cannabis debt financing as the process of a cannabis business borrowing money from financial sources and committing to repay it with interest over a specified period—allowing the company to raise capital without giving up equity. (CannaBIZ Collects)
How big is the cannabis debt maturity wall by 2026?
MJBizDaily reports $6 billion in debt is maturing by the end of 2026, with the top five borrowers accounting for $3.4 billion. Blank Rome similarly cites roughly $6 billion due by the end of 2026 and about $3.4 billion held by the top five MSOs. HBK cites up to $3 billion due by the end of 2026, reflecting different analysis scope and assumptions. (MJBizDaily) (Blank Rome) (HBK)
Why do cannabis companies use debt instead of selling equity?
Both CannaBIZ Collects and Order.co point to the same advantage: debt can provide capital while allowing operators to retain ownership and control, rather than diluting equity. (CannaBIZ Collects) (Order.co)
What are common options for cannabis debt financing?
CannaBIZ Collects lists several options: cannabis bank loans, lines of credit, equipment financing, convertible notes, and private lending arrangements. Order.co also discusses private loans as a practical path for cannabis companies seeking financing without certain regulatory roadblocks. (CannaBIZ Collects) (Order.co)
What should operators do first if they’re worried about cannabis debt coming due?
MJBizDaily’s coverage provides two clear starting points: engage early (as Verano’s CFO described through proactive refinancing discussions ahead of 2026) and ensure you can demonstrate cash flow so investors reasonably expect repayment. The same report also warns the process can require significant time and legal expense—making early expert support part of the plan. (MJBizDaily)
Need Help Collecting Payments?
Cannabis businesses wait 45-60 days on average for B2B payments.
We'll get you paid faster.
