Even after the legalization of marijuana and the boom in business, marijuana dispensaries are still facing challenges of financial and banking options. Even their customers have to choose a single method of payment, mostly cash. That means, even if marijuana has been legalized, banks are still reluctant to include marijuana businesses in their operations for different reasons. So, even when operating in the modern-day economy, dispensaries in the cannabis sector have to operate the old way when it comes to choosing financial options. Even when a pot shop that sells medical and recreational marijuana is licensed and has all the legal documents, the federal system considers it as an illegal business.
Dispensaries Can Only Operate with Cash
For every business, being connected with a bank is vital. The bank provides lending chances that help in starting and growing businesses. Banks offer many financial necessities for businesses, and without any link to them, marijuana dispensaries are forced to operate the old way. They have to use cash and this brings a lot of problems, especially when customers want to use credit cards. Even when it comes to paying taxes, the dispensaries have to deliver it in cash, and this comes with a lot of expenses. Also, consider the fact that this money has to be transferred with well-secured vehicles. Paying employees in cash is even harder than using cheques, and this is only an opportunity for theft at work.
Marijuana Businesses are Bad for Others
Being linked to any marijuana-related business is also bad for other businesses when it comes to banking. The business does not have to be directly involved in buying or selling marijuana. However, being involved in related activities could affect their banking options. Whether it is a plumber, an electrician, a manufacturer, or any other professional linked to this business, it may be difficult for them to find a reliable banking option.
Getting a Bank Willing to Support a Dispensary is Costly and Uncertain
If a marijuana dispensary is lucky enough to get a bank ready to support it, it is mostly the small financial institutions. However, weed dispensaries are always hit with high banking fees that do not apply to other businesses. The excuse is always due to the laws related to the marijuana business and the effort these institutions have to take to keep the business clean. Some of the dispensaries have been able to get bank accounts. However, they are forced to use less-suspicious names or register as part of another “clean” business. This is uncertain, and sooner or later the bank discovers and closes down the account. Clearly, this is a big hassle for these businesses.
Is There Hope on Loosening the Banking Restrictions?
As the cannabis business continues to boom and people continue to use cannabis responsibly, there is hope that these restrictions will be pulled down. There have been several debates and congress meetings to see the way forward. So, tomorrow might be a brighter day for cannabis businesses.
Final Thoughts
Today, cannabis businesses have limited financial options. Since Federal Law considers cannabis as an illegal drug, businesses still have a hard time operating. The only financial option they have is using cash in all their operations. However, with time, things may get better for them.