Companies that sell CBD-based products, even without the THC component, face difficulties getting bank accounts, financing, and even just cashing their checks.
Tip 1: Reach Out to the Hemp/CBD Community
The difficulties CBD companies encounter when attempting to get financial services are not new. Hemp farmers, CBD producers, and other industry players have been dealing with unfriendly banking policies for years. As such, you’re likely to find a bank that can provide you with the financial services you need by asking the people who have already been through the challenges. There are quite a few forums online that will connect you with others in the CBD and hemp industry who you can ask for bank recommendations that will at least give you a starting point.
Tip 2: Choose a Bank With a Dedicated CBD Team
Many banks might tell you they can work with you even if your company sells CBD-based products, but they may not really know much about the regulations and other requirements that will protect your accounts if anyone questions your company’s legitimacy. A bank that has a dedicated team that works with CBD businesses, though, will already know the pitfalls that CBD companies need to avoid when getting financial services. Their experience will benefit you since you won’t have to learn the hard way if certain products won’t work for your company.
Tip 3: Interview the Banks
Once you have a short list of banks that you know will work with CBD companies and have dedicated teams that work with hemp businesses, you’ll want to interview each one before making a final decision. Ask questions about their long-term strategy in terms of working with CBD companies and whether they’re committed to assisting with the additional paperwork that’s going to be required to ensure your accounts are legitimate. The reason you need to know the answers to these questions is because you don’t want to be a partner with a bank that’s not committed to your business. You don’t want them changing their mind and dropping your accounts down the road.
Tip 4: Be Prepared for Challenges
There’s no way around it: there will be challenges in obtaining banking services when you sell CBD-related products. You’re going to have to provide much more documentation to any bank that agrees to work with CBD businesses. For instance, you may need to provide the bank with state permits, an IRS number, an employer identification number, tax certificates, business permits, registration numbers, and more. They need to know that you’re a legitimate business and have the proof of that legitimacy in case anyone asks to see it. You should be prepared to give this information to them with the understanding that without it, you won’t get the banking services you need.
Banking has long been an issue for companies that deal in CBD and hemp, causing many business owners to have to deal all in cash, which is a risky and dangerous proposition. Getting a bank account is paramount to legitimizing your business, and even though it’s still a challenging process, it is possible.To learn more about types of CBD and their uses, this guide will provide you more information.