Unfortunately, the SBA does not work with medical marijuana dispensaries. Do medical marijuana dispensaries receive access to these same loans? The SBA provides educational materials, training, and low-interest, long-term loan options when small businesses can’t receive traditional loans. When most business owners can’t receive funding from banks, they turn to another great resource: the Small Business Administration. operated accounts with marijuana businesses in early 2018 - up 20% from early 2017 - marijuana businesses still do not have access to a full range of banking and financial services offered to other businesses, such as loans, credit cards, and merchant accounts. While a FinCEN report showed that over 400 banks in the U.S. Although the odds of this law being enforced are slim, lenders simply don’t want to take that risk.įor those reasons, most banks will not loan money to medical marijuana dispensaries or other businesses in the cannabis industry. For example, a bank could be charged with money laundering for accepting deposits from a medical marijuana dispensary. There are also legal issues that a bank could potentially face when working with businesses in the cannabis industry. Instead of taking on this risk, most banks opt to simply avoid working with businesses in the cannabis industry. This includes medical marijuana dispensaries. A bank that works with companies that violate federal law will not be insured by the FDIC. Therefore, medical marijuana dispensaries either have to make enough capital on their own to keep the business moving forward, or these business owners have to seek out other means of financing.īanks are insured by the Federal Deposit Insurance Corporation. These expenses pile up quickly, but due to legal issues, traditional financing is often not an option. In other words, medical marijuana dispensaries have the same expenses as regular businesses (utility bills, property leases, etc.) as well as additional expenses to keep their business protected. Businesses that don’t have merchant accounts and work with cash have additional business expenses to protect their earnings - think high-tech video surveillance systems and reinforced windows and doors. Even opening a checking, savings, or merchant account for most medical marijuana dispensaries is a hassle, while receiving financing through traditional lenders is nearly impossible.Īnd if you do find a financial institution that will allow you to open accounts, there are many associated costs, including fees for background checks and for regular reports to the Treasury Department’s Financial Crimes Enforcement Network. Most lenders want to avoid the potential legal repercussions of working with businesses in the cannabis industry, as these businesses are considered high-risk. Even though more states are legalizing medical marijuana, it remains illegal under federal law. With a medical marijuana dispensary, there are even more hurdles you have to clear on the race to financing. Depending on the lender you work with, it may take weeks or even months to receive financing, from start to finish. Challenges may pop up throughout the process. Once you’ve identified your lender, you go through the underwriting process, making sure you have all of your paperwork in order to prove that your business is qualified to receive financing. You have to find a lender that offers the best rates and terms to receive the most affordable loan. Obtaining funding for any business is no easy task. Medical Marijuana Dispensary Funding Challenges What You Need To Qualify For Medical Marijuana Dispensary Business Financing.The Best Financing Options For Startups.Crowdfunding Your Medical Marijuana Dispensary.The Best Loans For Marijuana Businesses.Equity Financing For Medical Marijuana Dispensaries.Can I Get A Dispensary Loan From A Bank?.Medical Marijuana Dispensary Funding Challenges.Project Management Software For Construction.What Is Shopify & How Does Shopify Work?.Buy Now Buttons: The Key To Selling On Your Blog Or Website.Is Dropshipping Worth It? How To Make The Right Choice.Best eCommerce Platform For Small Business.Discover The Best eCommerce Platforms In 2022.Complete List Of Business Tax Deductions.Discover The Best Accounting & Payroll Software In 2022.Find Accounting & Payroll Software Reviews.Business Credit Cards Without Personal Guarantee.Which Business Bank Account is Right For You?.How Signing a Personal Gurantee Affects You.Explore Business Credit & Banking Resources.Best Business Credit Cards For Your Nonprofit Organization.Discover The Best Business Credit Cards In 2022.PayPal Working Capital Loan Alternatives.Best Loans For Startups With Bad Credit.What Is A POS System & Choosing The Best For Your Business.Research Credit Card Processing Reviews.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |