Your cannabis business is growing, and you need the support of a bank that can grow with you. We provide access to compliant bank accounts, treasury management, payments, lending products, BSA/AML compliance, and other financial services to companies within the cannabis industry. Simply put, we provide cannabis businesses access to a full suite of banking services.
We help cannabis businesses stay ahead of the curve with the help of our resources for cannabis business lending and depository relationship opportunities. Finding these for your cannabis business can be a major challenge. Despite its legalization in Michigan, cannabis businesses can run into a variety of problems during the hunt for banking needs since marijuana still remains at illegal at the federal level.
We offer consultation regarding which type of financing option would be the most suitable for your specific needs. We want to assist, simplify, and streamline the process of securing and maintaining a business banking relationship. For years, lending has been the biggest perceived “no-go zone” for banks working with the cannabis industry. Few will open their doors to cannabis industry borrowers. Some of the reasons are:
Risk of seizure:
Banks are concerned about collateral integrity, as there is a small but non-zero chance that a cannabis business’s assets may be seized by federal law enforcement. Without collateral, lenders can risk not recouping their assets, making lending to the sector a high-risk endeavor.
Perhaps most arbitrary of these concerns, many in the financial world still see the cannabis industry as an unsavory one. They are simply unwilling to work with an industry that they perceive might cause reputational risks
Unsurprisingly, the shortage of banks willing to lend to the cannabis industry has made it extremely difficult for borrowers to access desperately needed capital. To access funding when banks aren’t available, cannabis lenders turn to the private market.
An overwhelming 90% of cannabis lending comes from private sources. However, access to capital through these means is expensive. Investors will ask for equity in exchange for cash, and private lenders often have less than desirable conditions for borrowers, such as a lower loan-to-value (LTV) ratio or sky-high interest rates.
The cannabis industry is an expensive one to operate in, and a lending and deposit relationship with a bank can be game-changing for many entrepreneurs in this space.
We will inform you of any new products or services