(This is an abridged version of a story that appears in the November-December issue of Marijuana Business Magazine.)
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.
“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.”
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.