What You’ll Learn
- Get answers to the question: “What do I need to open a business bank account for a cannabis business?”
- Learn what documents are required in the application so you can be prepared when it’s time to apply for a cannabis business banking account.
As a cannabis business owner, opening a business banking account involves a few more steps than a non-cannabis business would have. Even today, with recreational cannabis legalized in over 20 states, big national banks won’t serve the cannabis industry. It’s too risky for them, and the added compliance burdens are too costly. As a result, cannabis entrepreneurs often must turn to smaller institutions like community banks and credit unions to secure their business banking accounts. In this article, we’ll go over what’s unique about banking services for the cannabis industry, plus what documentation you’ll need when you apply for an account.
How Banking for the Cannabis Industry is Different
If you’re new to the cannabis industry and you are seeking a business banking account, be prepared for stricter compliance controls, longer timeframes, and additional paperwork compared to traditional banking. Why the extra hurdles for the cannabis industry? Because cannabis is still illegal at the federal level and it is highly regulated in the states where it is legal, banks and credit unions that serve the industry follow stricter oversight and due diligence. Luckily, with the right banking team on your side, you’ll have expert guidance navigating the application process.
Experience Matters: Finding the Right Banking Partner
When it comes to cannabis banking, it pays to partner with people who know what they’re doing—not figuring it out as they go along. We’ve seen other financial institutions start cannabis banking programs only to shut them down because of the significant compliance requirements.
Salal has been here since the beginning. Starting in 2014, we have been a national leader in providing financial solutions for licensed and regulated cannabis businesses and their employees. We’ve partnered closely with state regulators to offer cannabis businesses a wide range of dependable banking services. From business checking and savings to cash management solutions to equipment and commercial real estate loans, we take pride in helping cannabis businesses thrive.
Getting Ready to Apply
Now let’s dive into the details. Before you start the business account application process, you’ll want to make sure you have all the required documentation ready to go. Here’s a checklist of what you’ll need:
Download the New Business Account Checklist
We’re Here to Help
Ready to take the next step toward opening a bank account for your cannabis business? The Salal Business Services team is always happy to share more info about the application process, go over the wide range of services we offer, and help you start your application. Connect with a Salal Business Banking Officer at 206.298.9398 or BusinessInquiries@SalalCU.org.
