The cannabis industry faces an array of banking challenges. In fact, only about 3.5% of banks in the US accept clients from the legal marijuana industry, which means that many cannabis businesses are unable to open bank accounts and manage their finances safely.
However, this does not mean that it is impossible to manage your finances and pay your employees as an owner of a marijuana-related business. Although banking can be difficult for cannabis companies, recent legislation and the emergence of many HR and banking partners willing to help out seem to be pushing towards a brighter future for the industry.
Keep on reading to learn what you can do to overcome cannabis banking challenges and ensure compliance.
Unfortunately, only some of the 3.5% of US banks cover each industry sector, with some banks working exclusively with CBD businesses and others with THC licensees. And considering the uneven playing field across different states, the difficulties of obtaining the necessary banking options for your business are more than evident.
Nevertheless, there is no reason to despair, as there are several options available to cannabis-business owners who need appropriate banking solutions. Here are some tips for finding a bank to work with:
There are many companies offering cannabis banking solutions across the US. They typically work to meet the HR, payroll, and banking needs of cannabis-related businesses. If you are struggling to find a willing bank, such a company can help connect you with appropriate payment processing and banking options and prepare you for any regulatory changes.
Having strict financial measures in place can go a long way toward helping you secure a bank account. The bank will want to see in-depth financial records, including information from your POS software and other tracking systems. Make sure to prepare all the relevant paperwork before meeting with your back to ensure a fully transparent relationship.
There is no room for failure when it comes to ensuring a legally compliant relationship with your bank. They should be aware of every aspect of your finances and operations. You will need to be able to show your accounting and explain any cash sources. Essentially, you should be an open book, ensuring full transparency in each aspect of your finances.
Once all the paperwork is in order and you’ve contacted the bank, you will be ready for your first meeting, where you will discuss the specifics of your company and explain which services you will need. The bank will review your financial documents and other relevant paperwork. With some luck, they will set you up for compliant payment processing and banking services that will help your business thrive.
With the banking obstacles out of the way, you’ll be free to grow your business in a compliant, fully transparent manner. However, keep in mind that trying to obtain a bank account can be a lengthy, difficult process, especially if you try to do it on your own. This is why many cannabis business owners choose to connect with companies that specialize in helping marijuana-related companies obtain appropriate banking solutions.
With Green Leaf Business Solutions, you can avoid any finance-related risks and set your cannabis business up for success. From ensuring compliance with AML and BSA requirements to locating compliant banks, we have the experience and knowledge to help you overcome the many banking challenges present in the cannabis industry.
Contact us and enjoy streamlined HR, banking, and payroll services for your high-risk business. Get in touch with Green Leaf Business Solutions today.