CBD brands and businesses have a tough time getting compliant, sustainable, and stable banking services. This article tells you exactly what to do to open up a bank account for your CBD Business.
What is CBD?
CBD is one of the many plant-based remedies that people use for many ailments. CBD is not psychoactive like THC, but it can still provide relief from pain and other symptoms without the "high" feeling of traditional marijuana. With the uncertainty of the industry, banks a reluctant to offer banking services to CBD and Hemp companies.
Where To Find A CBD and Hemp Friendly Bank Near You?
My advice is to not even entertain any banks. You are most likely gonna be told “no”. Call up all of the credit unions in your area and ask if they serve CBD companies. To open up a account you will need to meet certain requirements and have the following documents ready:
- Articles of incorporation/ organization
- EIN number
- Operating agreement
Can CBD companies use banks like US Bank, Wells Fargo, Chase, etc?
CBD businesses are finding themselves in new territory. With the risks and regulations associated with the industry, many players will be facing new challenges. Many banks have refused to accept CBD businesses, meaning electronic payments are out of the question.
Does Square Business Banking allow CBD sales?
Yes. This is our solution. Our CBD company got approved to process CBD Credit Card Payments with Square in 2019. Since then, they’ve introduced Square Business Banking that allows you to open up a checking and savings account. Square Business Banking also offers small business loans for your CBD business.
More on CBD Business Financing in the following sections.
Where To Find Financing For Your CBD Company
Once you establish a relationship with your credit union, you can now focus on funding your CBD business. There are many ways to fund your business, even as a startup. The first thing you should is ask your credit union for a line of credit for your business. They’ll be happy to offer you a small loan at least.
The are also other startup friendly business funding services like:
It’s also a great idea to utilize business credit cards. Even though you can’t open a bank account with these companies, they will offer you credit cards for your business. These companies will offer you business credit:
- American Express
- Capital One Spark Business
- First Tech Fed
- Digital Credit Union
- Wells Fargo
Learn How To Grow Your CBD Business Today.
If you want the learn more on growing and funding your CBD business, check out our FREE CBD Beginners Course on YouTube. We have a series of videos on:
- CBD Ecommerce,
- CBD Laws,
- CBD Marketing,
- CBD Shipping,
- and so much more.
Watch the videos, smash the Like button, Subscribe to our channel, and leave a comment.