Written by FirmEU Team
The CBD industry is booming, with more people using CBD products. But, running a CBD business isn’t always easy, especially when it comes to dealing with banks and handling money.
This is because most banks see CBD businesses as high-risk, making it tough to find good banking partners and payment solutions.
In this guide, we’re going to help you understand how to work with banks when you’re in the CBD industry.
We’ll show you how to pick the right bank, manage your money safely, and keep your business growing strong.
It’s not a secret that most banks see CBD businesses as high-risk. But, why is that – here are some of the key reasons:
CBD businesses often hit roadblocks when trying to work with banks.
First off, many banks just say no to them because they think the risk is too high. This means finding a bank willing to take you on can be really hard – even if you find one, there might be high fees or tough rules to follow.
Plus, since the rules around CBD keep changing, banks might suddenly change their mind, leaving businesses in a tough spot. All of this makes handling money and growing a CBD business quite challenging.
The rules around selling CBD products can be pretty confusing because they change a lot and are different in each place.
For example, some states in the USA are totally okay with CBD, but others have strict rules. On top of that, the big rules for the whole country are still being figured out.
Banks look at all these changing and complicated rules and worry about getting in trouble. So, they’re often careful and sometimes don’t want to work with CBD businesses to avoid any problems.
If you are running a CBD business and want to work with a bank, there are a few key things to consider.
Being open and following the rules is very important for CBD businesses, especially when dealing with banks. Here’s why:
1. Clear Communication: Tell your bank everything about your business – this means how you make money, where your products come from, and who buys them. Banks like to know they’re working with honest businesses.
2. Following the Law: Make sure you’re up to date with the latest rules about selling CBD. This can change a lot, so always check you’re doing things right.
3. Keeping Records: Have all your paperwork ready – this includes licenses, product tests, and sales records as it shows banks you’re serious and careful.
4. Building Trust: When banks see you’re clear about everything and follow the rules, they’re more likely to work with you. It builds trust, which is key in banking.
So, being transparent and sticking to the rules helps your CBD business build a good relationship with banks. It makes things smoother for everyone.
When you’re picking a bank for your CBD business, looking closely at fees and contract terms is very important – here’s how to handle it:
1. Read Everything: Before you say yes, read all the details in the contract – look for any fees you’ll have to pay.
2. Ask Questions: If something isn’t clear, ask about it. You want to know exactly what you’re agreeing to.
3. Compare: Check out different banks. Some might have lower fees or better terms for your business.
4. Negotiate: Don’t be shy to talk about the fees and terms. Sometimes, you can get a better deal by just asking.
Understanding and talking about fees and terms helps you find the best banking option for your CBD business, saving you money and trouble later on.
If you are looking for a safe and secure banking partner for your CBD business, FIRMEU can help.
Our team specializes in working with CBD businesses and can provide the support and guidance you need to navigate the banking process.
Contact us today to learn more about our services and how we can help your business thrive.
This is what you are getting:
Aside from understanding fees and contract terms, there are other best practices you can follow to ensure a smooth and successful banking experience for your CBD business. These include:
1. Keep detailed records: Having organized and accurate financial records will not only make it easier for you to manage your business but also show banks that you have a handle on your finances.
2. Be honest and transparent: When discussing your business with a bank, be upfront about your products and services. Trying to hide that you are a CBD business can lead to complications and possibly even termination of your account.
3. Stay compliant: Make sure your business is following all state and federal laws and regulations related to CBD. This will not only protect you from legal issues but also show banks that you are a trustworthy and legitimate business.
4. Build relationships: Networking and building relationships with other businesses in the industry can lead to valuable insights and connections that may help with your banking needs.
5. Stay informed: Keep up-to-date on any changes or updates in the CBD industry and how they may impact your business. This will help you stay proactive and prepared when it comes to your banking needs.
The future of banking for CBD businesses looks promising but it’s going to have some changes. As more people understand CBD and its benefits, the industry is growing fast. This means banks might start seeing CBD businesses in a new light, not just as high-risk.
Here’s what could happen:
In short, the future looks bright for CBD businesses in banking. There might be challenges ahead, but things are moving towards a more open and supportive banking environment for the CBD industry.
If you are running a CBD business, it’s important to stay informed about changes and updates in the industry. Soon, you might have more options when it comes to managing your finances and working with banks. If you are looking for a payment processor partner, FIRMEU is here to help. We specialize in providing secure and reliable payment solutions for high-risk industries like CBD. Contact us today to learn more about how we can assist your business’s financial needs.
Discover the full range of services we can offer with a free quote.
