Everyone wants a part of the CBD business. Most average consumers want to try CBD to see if it truly has the relaxing and restorative powers that people talk about. And companies want to start carrying it so that they can benefit from some of the newfound profit it's brought businesses.
Yet, CBD companies are finding it harder to be treated the same as companies from other industries. Most financial and legal institutions are wary about cannabis, and so they are making CBD companies jump through extra hoops just to sell their products. Since cannabis hasn't been legalized everywhere, companies want to make sure they're not breaking the law.
That makes it hard for CBD companies to grow and thrive in the same way most companies would. They simply can't make as much profit as they would be if they were treated like any other business.
It's vital to find creditors and merchant accounts that do more than set up the framework for your business. You need one that treats you the same as any other company. Keep reading below to learn how to find one that does that!
The CBD Business Can be Hard for New Companies
New companies in the CBD industry have it rough. Not only is there a lot of competition in CBD markets across the world, but it's hard to get established in the first place. There are more legal and financial hoops to get through than usual when starting a CBD business.
Financial institutions are used to handling average retailers that sell items like clothes or electronics. With items like those, they can be confident they're not breaking the law by helping them process financial transactions. They don't have that kind of confidence when it comes to cannabis.
So, they may require CBD companies to submit extra paperwork, or refuse to business with them outright. And that hurts the industry as a whole — not just your company.
Pick a Company That Has Experience With CBD
It's important to find a company that worked with CBD companies in the past. That way, you can be assured that they're prepared for any kind of unusual laws that may be associated with the business. If your financial institution worked with CBD companies in the past, you can be confident they're ready for anything!
It also means you won't be treated any different compared to another company. Most of the time, financial institutions will be excited to tell you about their experiences with other CBD companies, too! So, they should be easy to find.
Don't Let Cryptocurrency Stay Cryptic
Since CBD is inherently a new kind of business, there is no reason your financial institution shouldn't try new approaches to finances. Processing credit card and debit card transactions are easy enough — cryptocurrency can get hard on your own. Yet, accepting cryptocurrencies can open your company up to whole new audiences.
Try to find a company that can also process Bitcoin or other popular kinds of cryptocurrency. That way, you'll be able to cater to more people and grow your company even more!
You Need a Merchant Account to Succeed
Having a merchant account isn't just a fundamental part of a CBD business. It's important for any kind of business to be able to process credit cards. Otherwise, it won't be able to reach as many people as its competition and will lose valuable revenue.
It's hard to find a financial institution that processes transactions with CBD businesses. Yet, it's not impossible. Reach out to us if you're having trouble starting a CBD merchant account, and we'll make sure you have everything you need to succeed in CBD.