It’s not totally impossible to get funding for your hopeful cannabis business.
December 4, 2019 2 min read
This story originally appeared on MJBizDaily
Though the majority of U.S. financial institutions remain hesitant to offer accounts and loans to non-plant-touching cannabis companies, there are steps those businesses can take to land a banking partner.
According to industry stakeholders who spoke with Marijuana Business Magazine, the options to increase an ancillary company’s chances of getting a financial institution to work with them include:
- Establishing exclusive relationships with licensed marijuana firms.
- Exhibiting professional behavior.
- Being clear about their needs.
- Banking at more than one institution so they always have access to banking account.
RELATED: Your Cannabis Company Can Get A Bank Account But Not Easily
“Ancillary companies have a number of options throughout the country that will take accounts,” said Tyler Beuerlein, executive vice president of business development for Arizona-based Hypur.
“Some larger regional institutions are actually targeting those (ancillary) operators. They don’t want to bank plant-touching operators, but they’re actively looking to increase their deposits, so this is an attractive way for them to do that.”
RELATED: 5 Safe Banking Alternatives For Cannabis Companies
Here some key points ancillary cannabis companies should consider when shopping around for a financial institution:
- Be prepared for the challenges you’ll inevitably face.
- Know what your company wants from a potential banker.
- Be able to provide any paperwork the banker might want to see.
- Offer transparency about your company – and your partners.
A banking option that ancillary cannabis companies can’t yet consider are Canadian financial institutions. Read an experience one U.S. cannabis stakeholder shared with Marijuana Business Magazine on the subject.
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