The regulations surrounding cannabis prohibit many businesses from doing business with normal financial institutions, leading private and cannabis-friendly banks to offer creative solutions for these companies.
Considering the standard regulations surrounding the plant, cannabis businesses need to maneuver around the cash-handling problem to protect their finances by finding the best cannabis-friendly banks to partner with.
Currently, very few cannabis-friendly banks work with cannabis companies to provide marijuana banking solutions for their financial needs.
Knowing how to find reputable cannabis banks with the right services is hard since not all are created equal.
If you have a cannabis company looking for a cash-handling solution to secure your money in one place then a cannabis-friendly bank is your best option.
We outline the top cannabis-friendly banks to minimize and avoid financial risks.
Importance Of Cannabis-Friendly Banks For Cannabis Businesses
Cannabis-friendly banks are important for keeping your money in a safe place without worrying about misplacing cash, theft, and handling cash-only transactions.
Considering the Schedule 1 Substance regulation on cannabis, many traditional financial institutions don’t offer services to cannabis operations. This forces them to operate in cash-only transactions leaving ample room for misappropriation of funds and other money issues.
This is where cannabis banks come in to help operations in the industry secure their finances that align with regulations.
If banks work with cannabis companies, they can help them accept bank cards from their customers, securing a safe transaction. The safe transaction allows for a smoother experience for the customer and the business itself.
Cannabis-friendly bank services also offer a platform for deposit and transaction monitoring, secure cash transport service, an online banking platform, and a few others.
Cannabis businesses working with compliant financial institutions are open to a low-cost deposit for their money. This allows for a sustainable profit margin within the company’s financial operations.
Essentially, the services cannabis banks offer, give regulated companies more financial service opportunities providing them with more flexibility and a wider selection.
Cannabis banks can work with any company in the highly regulated industry as long as they meet certain requirements and adhere to regulatory compliance standards.
Finding friendly banks can put your business on the right path to securing your money, but we recommend you work with an accounting expert to review your financial options.
At Green Space Accounting, we help carve the path to find financial and banking solutions that enhance their cash-handling operations, all while maintaining compliance.
Cannabis-Friendly Banks To Keep Your Money Secure
Now we’ve understood why cannabis-friendly banks are necessary for cannabis companies, it’s time to explore the top banks for your company.
1. Safe Harbor Financial
The Safe Harbor Financial Bank provides financial services to cannabis businesses in different segments. In 2015, they began offering reliable and compliant financial solutions, specifically for the industry.
They offer a comprehensive financial service menu to help operations function and operate with ease.
These services include the following:
- Checking And Saving Accounts
- Electronic Tax Payments
- Direct Deposit Payroll
- Financing
- Wire Services
- Online Banking Access
- Consumer Payments
They provide more services than these for the cannabis industry to ensure every business owner receives a full-service selection.
The company also has a 5-star review from Google and the Better Business Bureau (BBB) making them a top choice.
2. Tasi Bank
Financial Tasi Bank offers banking options to cannabis companies in the industry.
Tasi started in the 1970s delivering banking services to traditional non-cannabis-related companies until 2015. From then on, Tasi set its course to deliver banking solutions to the regulated industry.
However, TASI Bank only works with cannabis-related businesses in California.
They deliver a quality selection of financial services that include the following:
- Business checking and savings
- Business money market
- Loans
- Funding
Currently, the bank has a 5-star review on its Facebook page, but there are only a few reviews from cannabis businesses.
3. Paybiotic Financial
Paybiotic Financial has over 10 years of experience in the cannabis industry and more than 10 years of financial expertise. They only provide services for cannabis operations to help secure their financial future.
They offer a selection of services including:
- Online Banking
- FDIC Insured Checking Accounts
- Corporate Debit Cards
- Domestic Wires
- Deposits
- ACH Payments
These are some of the services Paybiotic Financial offers to cannabis companies and they may offer more.
The financial institution has a 3.6 out of 5-star rating on Trustpilot and a 5 out of 5-star rating review on Google.
4. CFG Bank
CFG Bank serves traditional and cannabis-related businesses but has been in operation since 1997. They recently began serving the cannabis industry with banking solutions.
They deliver financial services to cannabis operations that include the following:
- Commercial lending services
- Deposit services
- Cash management services
- Online mobile banking
These are some of the services to incorporate within your cannabis company that help secure your finances.
CFG bank has a 3.7 out of 5-star rating on Trustpilot but with limited reviews on how well they work with cannabis companies.
5. Needham Bank
Needham Bank began operating over 130 years ago and remains a prominent bank in the U.S. They currently offer financial services to the cannabis industry to help businesses operate securely.
They offer the following services:
- Lending for construction
- Standby letters of credit
- Commercial real estate mortgages
- Cash management services
- Term loans
- Personal deposit and loan accounts
- Working capital lines of credit
These services provide cannabis companies with a way to operate their organization effortlessly, without worrying about security risks.
The financial institution has a 3.1-star rating on Yelp providing solutions to the right businesses.
How To Choose A Cannabis Bank
When choosing a cannabis bank, you need to ensure they’re reputable, provide a selection of services, maintain positive reviews, are fully compliant with state and federal regulators for security, and work with cannabis companies in the industry.
The banks we chose are some of the top choices to secure your financial operations that pass these criterias.
Here are some of the criteria they must have:
- Make Sure They’re Reputable: When a bank is reputable, it follows the compliance regulations to maintain operations. Banks operating for a longer period are more reputable than new banks. It’s important to keep this in mind as you’re searching for the right bank.
- Must-Have A Selection Of Services: Cannabis-friendly banks must offer a selection of services for the industry. Cannabis companies should have a choice of financial services to enhance their operations.
- Must-Have Positive Reviews: Banks must also have positive reviews to back up their credibility even further. The more positive reviews they have about their bank then the better chance your business can have the same positive experience.
- Works In The Cannabis Industry: You need to find banks that serve cannabis companies within the industry. If they don’t then you risk compliance and security risks.
It’s essential to thoroughly research the banks you want to use for your organization. Without further research, there are compliance and regulatory risks that can interfere with your operations.
How Secure Are Cannabis-Friendly Banks?
Cannabis-friendly banks typically implement rigorous compliance measures to navigate challenges and minimize risks.
However, the level of security can vary depending on the bank’s policies, procedures, and risk management practices.
Cannabis banks know how to deliver financial solutions to cannabis operations in the industry, but there’s potential for regulations to change to allow these banks and businesses to minimize their restrictions due to the SAFE Banking Act.
The SAFE Banking Act ensures protection over financial institutions to work with cannabis-related companies.
Work With Cannabis Accountants To Explore Banking Options Carefully And Strategically
Before diving into the cannabis banking search, it’s best to speak with a cannabis accountant to lay out all your options.
At Green Space Accounting, we help optimize your financials, give you time back into your organization, and understand the regulatory landscape.
We work with cannabis operations to pinpoint promising financial and banking opportunities to help them grow financially.
As Maryland cannabis accountants, we search for all banking options and strategies to ensure companies get the most out of their dollar.
We can conduct a thorough financial analysis of your business and provide insight into your banking needs.
Our process allows us to assess factors such as cash flow, transaction volume, and financial stability, which can inform the selection of a bank that can adequately support your financial operations.
Contact us today to review your options.
