3 Things You May Need To Open A CBD Merchant Account
Across the country, more and more state legislators are taking note of cannabis and its health benefits, but there are still problems with marijuana, in any form, being recognized as legal on any level. This is true even with CBD, or Cannabidiol, which is a derivative of the plant and is used in all kinds of health-related products. Because most banks and financial institutions are federally insured, this can make it really hard on you if you are a business owner in the CBD industry. Thankfully, there are some financial institutions located out of the country who will be willing to offer you a CBD merchant account. Here are a few things you may need in order to open a CBD merchant account.
A stable business profit record to show.
If a financial institution is going to take you on as an account holder in such a risky business, they will want to know that you being their customer will be worth their while. Therefore, they will likely want to see that you have a healthy profit margin in your CBD business. If you are just starting out or you are only making small profits, you may have to wait until your business grows somewhat larger to obtain an account.
A stable business model that shows.
The business owners that have spent enough time in the cannabis industry know how prosperous the business can be. However, not every cannabis-related business starts out with the dedication and endurance to make it through such a volatile market where the federal laws can get in the way. A CBD banking institution will want to know that your business has remained stable throughout your time in operation. So you may be asked to provide paperwork to show how your business has grown over the prior years.
A plan of business for the future.
How do you expect your business to change over the coming years? Does your business plan show the changes you expect to see and how you will make them happen? The CBD account offerer may want to see that you plan to be in the cannabis industry for the long haul. They may want to know about your upcoming business plans, any situations you expect to change down the road, and how you plan to grow your business. These things would not normally be a concern with a regular account, but with a CBD merchant account, they definitely can be.