A few months ago, I realized that I desperately needed a loan to make ends meet. I thought long and hard about different ways to make a little extra cash, but borrowing was my only real option. I decided to work with a lender in my area to borrow money, and then afterwards, I devised a plan to pay it all back before I paid very much interest. It was difficult to learn to budget, but the results were well worth the effort. I was able to pay back the debt and set aside a little for a rainy day. Check out this blog to learn more about creating a budget to repay debt.
If you are starting the process of opening a cannabis dispensary, you may be well aware of the challenges that come with finding a banking solution. With cannabis still being illegal on a federal level, many banks do not want the risk of working with a business that is considered illegal in some states. That's why you'll want to know the following things about bank accounts for cannabis dispensaries.
Have A Friendly Business Name
As tempting as it may be to name your company something related to the cannabis industry, know that this can cause a lot of red flags to be raised when applying for banking services. Since cannabis dispensaries fall into this gray area due to not being legal in every state, it's important to lay low under the radar during the application process. A friendly business name that doesn't immediately draw suspicions about what you do can help your business be approved for the banking services that you need.
Use A Two Bank Account System
There is always the risk of having your bank account flagged even after it is approved for suspicious activity. The bank will then file a suspicious activity report, often called an S.A.R., where you'll need to prove what kind of activity your bank account is being used for. This can cause your bank account that was flagged to be frozen, leaving you with no funds that are available.
Using a two-bank account system will help ensure that you always have cash on hand for the needs of your business. It can be as simple as one account being used to take deposits, while another is used to pay expenses. Having an expense account with enough cash to help pay for those immediate needs in a worst-case situation can really help you out if your account is frozen.
Work With A Cannabis-Friendly Bank
Be aware that more banks are opening up to work with dispensaries, especially now that it is becoming legal in more states. That's why it may be worth staying away from the big national banks and going with a local bank that is cannabis friendly. It will help you avoid all of the previously mentioned hassles so that you can focus on your business instead. A cannabis-friendly bank is going to act as a partner with your business, rather than just a bank you are using to make transactions.
If you need cannabis banking solutions, reach out to a service like Paybotic.