Q: How long will it take for banks to start accepting cash being taken in through dispensaries and other cannabis businesses?
A: One of the lingering myths about the industry is that cannabis-related businesses do not have access to any banks or financial services. Cannabis businesses may be able to create accounts and store their cash and get checking accounts, but it remains true that plant-touching business generally has less access to such financial services like loans, credit-card payment processing, and revolving lines of credits.
With California’s adult-use market, the world’s largest, now getting underway, and larger states (Michigan, New Jersey) on the verge of legalization, the growing industry will put pressure on Congress to address the industry’s banking challenges. With nearly $10 billion in sales expected in 2018 alone, banking restrictions are becoming increasingly significant impediments to growth, and are driving higher costs and inefficiency.