XS Financial
XS Financial is a direct equipment lender providing $1M–$75M+ CAPEX financing and leases to U.S. middle-market businesses, with disclosed specialization in the legal cannabis industry, operated from Los Angeles and taken private in September 2024.
- Company typePrivate
- Founded2017
- HeadquartersLos Angeles, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What XS Financial does
XS Financial is a direct equipment lender founded in 2017 and headquartered in Los Angeles, California. The company provides tailored CAPEX and equipment financing to middle-market businesses, with disclosed specialization in serving legal U.S. cannabis operators—a vertical structurally underserved by traditional banks due to federal illegality. Financing tickets range from $1 million to over $75 million+, structured as direct loans or leases with amortization aligned to equipment useful life, an Equipment Line of Credit with no utilization fees, and scalable facilities up to 100% of equipment cost. The company employs 11–50 staff and operates a relationship-led, sales-driven origination model targeting industries including manufacturing, construction, mining, and cannabis.
The company operates two core revenue lines: (1) Equipment Financing—balance-sheet origination of leases and loans to end borrowers—and (2) Capital Markets—a platform offering third-party portfolio or transaction acquisitions and direct-lending partnerships with originators. Notable disclosed funding commitments include Curaleaf ($50 million), Ayr ($37.4 million), Columbia Care ($28.2 million), and PharmaCann ($21.5 million), collectively exceeding $136 million. Revenue is generated through interest and fees on these financing arrangements (transaction-fee economics), with bespoke, deal-by-deal pricing rather than standardized tiers.
Capital is sourced primarily through a senior credit facility with Needham Bank, scaled from $24 million (August 2022) to $54 million and then upsized to $70 million in June 2024 with maturity extended to June 2027. A $43.5 million private placement of unsecured convertible notes was completed in November 2021 to fund the cannabis equipment pipeline, with urban-gro participating. In September 2024, Mavik and Axar completed a take-private acquisition, transitioning XS Financial from founder- and investor-led ownership to private equity control. The company is a member of the Equipment Leasing and Finance Association (ELFA) and has been named among The Monitor's "101 Best Leasing Companies" for three consecutive years (2022–2024). The company was previously listed on the CNSX under ticker XSF prior to the take-private.
XS Financial firmographics
Firmographics- Name
- XS Financial
- Legal name
- XS Financial Inc.
- Website
- https://xsfinancial.com
- Company type
- Private
- Founded year
- 2017
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- XS Financial is a direct equipment lender providing $1M–$75M+ CAPEX financing and leases to U.S. middle-market businesses, with disclosed specialization in the legal cannabis industry, operated from Los Angeles and taken private in September 2024.
- Ownership category
- akta.pro rank
Where XS Financial is headquartered
LocationHeadquarters
- HQ city
- Los Angeles
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
XS Financial business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D
Revenue model
- Equipment Financing: XS Financial generates revenue through equipment financing and leasing arrangements. They provide flexible term structures with payments aligned to the equipment's useful life, financing up to 100% of equipment costs. Their financing solutions are industry-agnostic and tailored to middle-market business needs.
- Capital Markets: The Capital Markets platform offers third-party portfolio or transaction acquisitions, partnering with originators to structure direct lending solutions and provide strategic capital deployment across various industries and asset classes.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Multi-year contract | Customized equipment financing from $1MM to $75MM+ |
Go-to-market motion1 record
Distribution channels2 records
Marketing channels3 records
XS Financial product offering
Product offeringCore offering
XS Financial provides flexible equipment financing and CAPEX loans to middle-market businesses in the United States, with tailored term structures aligned to the useful life of equipment and financing sizes ranging from $1MM to $75MM+. Its Equipment Line of Credit carries no utilization fees and can finance up to 100% of equipment costs. The company also operates a Capital Markets platform that partners with direct originators and acquires third-party portfolios. While industry-agnostic, the company is particularly active in serving legal U.S. cannabis operators.
Product overview
XS Financial offers two interconnected core products: Equipment Financing and Capital Markets. Equipment Financing provides flexible, tailored financing solutions for middle-market businesses seeking equipment and CAPEX funding, with offerings including Equipment Lines of Credit with no utilization fees and scalable financing up to 100% of equipment cost. Capital Markets complements Equipment Financing by enabling direct lending partnerships with originators and facilitating third-party portfolio acquisitions, allowing the company to mitigate risk while growing its business. Together, these products serve the middle-market segment across various industries including manufacturing, construction, mining, and cannabis.
Differentiator
Problem solved
Functional benefit
Products and services
- Equipment Financing
Quantifiable outcome
- Funding commitments to top customers: Curaleaf ($50M), Ayr ($37.4M), Columbia Care ($28.2M), PharmaCann ($21.5M)
- +1 more outcomes
Companies that use XS Financial
Customer profileNamed customers4 records
Segments1 record
Ideal customer profiles2 records
XS Financial technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
XS Financial partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- Equipment Leasing and Finance Association (ELFA)minorXS Financial is a proud member of the Equipment Leasing and Finance Association (ELFA), an industry organization that upholds the highest standards in the equipment financing industry.
Scale indicators5 records
Recent moves6 records
Expansion highlights5 records
XS Financial competitors and assessment
Company assessmentDirect peers
- Balboa Capital: Direct equipment financing lender serving small and middle-market businesses across industries. Comparable in business model (direct-lender equipment financing with tailored term structures), though Balboa skews toward smaller ticket sizes and broader industry mix than XS Financial's capex-focused cannabis book.
- AFC Gamma: Externally managed specialty finance company that originates senior secured loans to state-licensed cannabis operators. Comparable as a cannabis-focused direct lender with institutional capital and a similar customer set, though AFC Gamma skews toward real-estate-secured credit rather than pure equipment.
- Marlin Business Services: Provider of capital solutions and equipment financing to small and mid-size businesses across the U.S. Comparable as a relationship-led, direct-lender equipment financier targeting the middle market, with similar sales-led GTM and customized term structures.
- Chicago Atlantic Group: A cannabis-focused specialty finance and credit platform providing senior secured loans and equipment financing to U.S. cannabis operators. Closest direct peer to XS Financial given overlapping customer base, product set (capex/equipment financing), and cannabis-only mandate.
- Silver Spike Capital: Specialty credit and equity vehicle focused on the cannabis ecosystem, providing debt and structured capital to operators and ancillary businesses. Comparable as a cannabis-specific capital provider competing for the same borrower relationships XS Financial serves.
Broad incumbents
- DLL: Global vendor and direct equipment finance provider serving agriculture, construction, transportation, and other verticals. Comparable equipment-finance capability set but with much broader geographic footprint, vendor-channel depth, and balance sheet scale than XS Financial.
- First Citizens BancShares (CIT Group): Large commercial bank with a substantial equipment finance franchise (formerly CIT). Overlaps with XS Financial in middle-market equipment financing but operates at much greater scale, with diversified deposit funding and broader industry coverage.
Others
- Needham Bank: Massachusetts-based community bank providing XS Financial's $70M credit facility. Not a direct competitor but a critical funding partner and infrastructure provider; comparable as a US commercial bank with equipment-finance exposure.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks5 records
Key highlights7 records
Customer concentration
XS Financial social profiles
Digital presenceXS Financial compliance and trust
Trust signalCompliance1 record
XS Financial financial estimates
Financial estimateRevenue estimate
Valuation estimate
XS Financial leadership team
Management profileNumber of profiles
Profiles5 records
XS Financial funding detail
Funding detailFunding overview
Funding rounds11 records
Investors5 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
XS Financial M&A and investment
M&A and investmentM&A
Investments1 record
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about XS Financial
What does XS Financial do?
XS Financial provides flexible equipment financing and CAPEX loans to middle-market businesses in the United States, with tailored term structures aligned to the useful life of equipment and financing sizes ranging from $1MM to $75MM+. Its Equipment Line of Credit carries no utilization fees and can finance up to 100% of equipment costs. The company also operates a Capital Markets platform that partners with direct originators and acquires third-party portfolios. While industry-agnostic, the company is particularly active in serving legal U.S. cannabis operators.
Is XS Financial a public or private company?
XS Financial is a private company. It is classified as private equity controlled and is currently operating.
When was XS Financial founded?
XS Financial was founded in 2017. It employs 11 to 50 people.
Where is XS Financial based?
XS Financial is headquartered in Los Angeles, United States, in the North America region.
How does XS Financial make money?
Two revenue lines are on record. Equipment Financing is the primary driver. The others are capital Markets.
Who are XS Financial's main competitors?
Direct peers on record are Balboa Capital, AFC Gamma, Marlin Business Services, Chicago Atlantic Group and Silver Spike Capital. Broad incumbents are DLL and First Citizens BancShares (CIT Group). Needham Bank is listed as an others.
Does XS Financial have an API?
No public API is recorded for XS Financial.