When it comes to cannabis commerce, it is no secret the industry is riddled with hurdles that usually are a challenge to jump over. From lack of capital to the inability to easily pay employees, the federal government and banks continue to make it difficult for cannabis-related businesses to run their operations.
What are some of the more common commerce-related hurdles cannabis operators face? Let’s take a look.
Lack of Access to Loans
One of the biggest clouds hanging over the industry is the lack of access to cannabis business loans. Unlike other industries such as clothing stores or restaurants, there are a finite amount of cannabis lenders willing and able to fund the industry, and with that being said, cannabis companies are subject to risk premiums. Historically, operators have tried to rely on self-funding to kickstart their company in hopes to attract external funding sources after the fact.
Complicated Compliance and Regulations
With more regulations than alcohol, cannabis remains incredibly complex when it comes to compliance. As State laws change and, hopefully soon, federal law, oversight and regulations are expected to remain in place. The regulatory complexity creates an increased cost to any organization, as a single misstep could lead to punitive or operational trouble.
Inefficient eCommerce and Payment Processing Options
Right now, mainstream eCommerce platforms, such as Shopify, do not allow the sale of cannabis. Due to federal law, big banks and payment processors are not comfortable engaging in the cannabis space. This leaves cannabis operations, whether B2C orB2B, using cannabis-specific payment systems and or simply transacting in cash. The industry has first-hand experience with the public safety risk that cash imposes on their business and their employees, as well as the risk and inconvenience to collect and deposit it into their bank.
Inability to Deposit Money
Going hand in hand with the issue of managing a business with cash is the expense and nuisance to deposit this cash into a business account if the cannabis business has a bank account. Unlike traditional retail businesses that can go to the bank and deposit money as part of a normal course of business, cannabis operators oftentimes succumb to holding hundreds of thousands of dollars in cash on-site to avoid the hassle and fees.
Employee Suffrage
One of the most astonishing issues cannabis operators face is how difficult the banks make it for employees to receive their paycheck. In an industry that supports 321,000 jobs, one would hope paying hardworking employees would not come with so much scrutiny. Employees are often questioned by their banks on their employment, and often times have their personal bank accounts shut down as a result of their employment in cannabis.
While these hurdles can oftentimes seem impossible to cross, there are solutions – like Confia. Designed for B2B and B2C transactions, Confia was born out of the vital need for cannabis operators to have low-cost and efficient financial services that can support the compliance and transactional complexity of the cannabis industry. From direct deposits and automated compliance to access to capital, Confia is the solution cannabis operators need.
Want to learn more about how Confia can help alleviate your commerce issues? Contact us today.
Cannabis operators typically need reliable financing to cover their many expenses, including property lease, equipment, inventory, and other vital resources. Looking for suitable funding options as an aspiring entrepreneur can be daunting. You’ll need to live up to the investors’ expectations to earn their trust and secure your funding.
Investors are proficient in the field of finance and know exactly what constitutes a promising company. Read on to learn how to successfully answer their questions and push your business forward. To get expert assistance in obtaining suitable funding, you can also partner up with a sophisticated cannabis commerce service like Confia.
How to answer tricky questions from investors and get funding?
Attracting investors can be a tall order. Your managerial team needs to impress them with their skills and presentation. It’s also important to assess and show a thorough understanding of your business risks. In addition, you’ll have to show that your financial operations are transparent and meticulously reported. Finally, your ownership paperwork has to be in order, too. Here’s how to complete these essential steps.
1. Prove that your management has what it takes
Investors are very discerning when it comes to your management’s strengths and weaknesses. They want to see confident, cooperative, and knowledgeable professionals who know exactly what they’re doing. Poor management doesn’t only drive investors away, it also spells trouble for your business in the long run. So, make sure that the team is well-prepared and has the subject matter down pat.
2. Be extra careful with managing your finances
Investors know the ins and outs of business finance and they will most likely expect you to keep up. Make sure that the financial side of your business is in order because investors want to see an immaculate track record. You’ll need a reliable bookkeeping system and all of your financial statements carefully filed and organized. You’ll need to submit your performance metrics to show you have potential to achieve great things.
3. Get a good understanding of the business risks involved
It’s essential for you to painstakingly examine and acknowledge the potential risks your business may face. Although you’ll work tirelessly to succeed, you can never be absolutely sure that it’ll happen. And if things go south, your investor can sue you for failing to disclose the risks. By presenting them openly, you’ll be protecting yourself and your business from future difficulties.
4. Make sure your ownership structure is fully transparent
It’s important to have the details of your ownership structure in black and white. First, ensure that your ownership agreement is in mint condition. It should be rooted in the reality of your business and based on industry-specific concepts. Also, all partners have to be on the same page regarding key points that will be presented to the investors. If they notice any worrying discrepancies, they will be unlikely to offer funding.
Where can I find a comprehensive cannabis commerce service?
Confia offers a robust suite of financial services to cannabis operators. Our innovative toolkit enables budding businesses to conduct financial operations in a streamlined and transparent way. Keep track of your transfers, offer your clients the option of effortless digital payments, use automated payroll processing, and ensure stringent legal compliance with current regulations.
On top of this, Confia also provides access to reliable lending solutions, which can make it easier to obtain your cannabis license and get your business off the ground. Optimize your business operations, grow your brand, and earn top dollar by selecting your custom membership option. Get in touch with us to fast-forward into the future of the cannabis industry.
Although the cannabis industry is growing rapidly, there’s still a high degree of distrust directed toward it. Cannabis operators face intense scrutiny and many legal challenges, which they’re often not ready to handle, especially if they’re a tiny startup hoping to take off.
Not having resources to solve these issues puts a company in danger. They may have to pay large fines, be stripped of their license, and ultimately lose profit as well as their good standing in the industry. Luckily, there are now companies like Confia, which offer tailored cannabis commerce solutions and operate on stringent compliance principles.
Keep reading to learn more about the most frequent hurdles that stand in the way of cannabis compliance.
How can I deal with common cannabis compliance complaints?
As a cannabis operator, maintaining the legal status of your business by staying compliant with local, state, and federal regulations is hugely important. However, it comes with its own fair share of challenges. Since it’s such a crucial part of protecting your brand, it’s worth looking into the most glaring compliance impediments. Once you know what to expect, you’ll be better equipped to effectively overcome these obstacles.
1. Time-consuming procedures
Keeping up with industry-relevant regulations and applying them consistently adds onto your workload and takes up a large portion of your time. This is often a waste of resources because it prevents you and your staff from handling other duties that actually yield profit. Instead of trying to stay on top of legal requirements, you could be using your time and energy to focus on business operations, boost sales, and earn more.
2. Multiple legal frameworks to consider
To operate successfully, you first need to meet federal legal demands, such as OSHA workplace safety standards and FCC standards. As if adhering to federal laws isn’t complicated enough, you also have to follow state and local cannabis-related regulations. Licensing requirements, quality standards, and other rules vary between locations, and it’s your responsibility to keep up-to-date with all of them.
3. Confusing and ever-changing regulations
Following the many rules that govern the cannabis industry is a multifaceted and complex task. To make matters worse, these legal frameworks undergo frequent changes. Staying in the know and adapting to shifting demands requires a lot of specialized knowledge and resourcefulness. This is why many cannabis operators outsource their financial dealings to expertly run financial networks.
4. Unreliable reporting software
Even after you’ve managed the complexity of cannabis regulation, there’s another problem to solve. Reporting tools used by most cannabis operators are slow, inefficient, and untrustworthy. Although businesses have long been left to fend for themselves, they can now access seamless financial services that use cutting-edge platforms and offer expedient payment processing, reporting, and compliance.
Where can I find fully-compliant cannabis commerce solutions?
Cannabis operators typically face the obstacles of inefficient commerce and compliance irregularities, which can seriously jeopardize their business growth. Confia can help you continue operating legitimately thanks to our streamlined BSA program. We use cutting-edge software to monitor your transactions and automate compliance procedures. With our meticulous screening and strict SOC-2 processing, your business can thrive without the risk of legal sanctions.
By partnering with us, you obtain access to other benefits, too. You’ll be able to use our FDIC-eligible, API-powered platform that relies on sophisticated technology to facilitate your financial transactions and ensure compliance. You can also unlock practical funding opportunities. Contact us to apply for a Confia membership package you need, get rapid onboarding, and log onto our intuitive platform to monitor your finances. We’ll remove stumbling blocks out of the way and pave your way to success!
The cannabis licensing process is extensive and time-consuming, but it’s a necessary step to running a successful, legal business. Even if you’re a seasoned entrepreneur, your previous experience may not have prepared you for this complex procedure. Since it requires a lot of effort and careful considerations, it’s best to think it through beforehand and arm yourself with patience.
Read on for expert tips that can help your team meet the stringent demands associated with license application. Learn how to handle the most frequent roadblocks it involves, from time constraints to unexpected issues. Start preparing on time, gather the necessary information and resources, and enter the process confidently.
Once you get your license, the only thing left to do is enlist dependable cannabis commerce help to ensure streamlined movement of money. You’ll soon be ready to start grabbing market share.
What to ask yourself before starting the application process?
Cannabis license applications require practical knowledge of the industry and resources that many teams find hard to put together. However, meticulous preparation increases your likelihood of successfully completing this process. By answering these four crucial questions, you can boost your chances of going through all the steps timely and with as few inconveniences as possible.
1. What kind of license does my company need?
Depending what area of the cannabis industry you’re in, you’ll apply for a suitable license. It’s not uncommon for entrepreneurs to rush through the stage of setting up their business, eager to start the actual operations.
However, your business is only likely to take off if you take a deep dive into current industry demands and determine how you can use them to your advantage. Carefully find a niche that fits your unique strengths, whether it’s running a dispensary, cultivating cannabis, or doing another service in the supply chain.
2. Who should I have on my team?
While licensing criteria differ between states, it is certain that your team’s expertise and experience will be evaluated. Your business needs a team that can meet both licensing requirements and the demands of daily operations. If your team lacks some type of specialized knowledge, you can hire a consultant to supply it.
3. How will I obtain funding?
Cannabis operators typically need funding to cover the cost of equipment, inventory, and other essential resources. Before you apply for your license, you’ll have to show investors that they’ll make the right move by injecting money into your business. It’s advisable to look for a provider of financial services, like Confia, which will give you easy access to financing opportunities.
4. What will be your contribution to your clients and the industry?
To prove you’ll be a responsible member of the industry, you have to find a consistent strategy for providing the kind of quality clients are after. In addition, it’s your responsibility to show your appreciation for your staff’s effort and expertise by giving them a sense of security. Your business plan should clearly reflect your mission to raise the bar by providing top quality and transparency.
Where can operators receive reliable cannabis commerce help?
Aspiring entrepreneurs who are putting together a cannabis licensing application have a steep road ahead of them. However, entering this thriving industry can be very rewarding if you have the right expert support to rely on. Confia has a unique set of membership options for cannabis operators, which give you access to tailored, industry-specific financial services.
Our API-powered, FDIC-eligible system uses cutting-edge automation to keep track of transactions and secure legal compliance. We’ll enable your clients to purchase your products effortlessly as well as provide you with reliable funding opportunities. Contact us to ease your company into the industry and give you a great head start.
Even though the cannabis industry is booming, there’s still a considerable lack of reliable commerce services for cannabis operators. The hurdles encountered by these businesses, especially in the area of legal compliance, often exceed their resources. However, regulatory compliance is an indispensable part of leading a successful company. Without it, you may face legal issues. Your reputation could take a hit and your earnings could drop. You may even have your license taken away.
Read on to learn how to stay compliant and conduct your financial operations in a transparent way. You’ll get your company on the right track and eliminate the common impediments that hold professionals in the industry back. With these obstacles out of the way, there will be nothing standing in the way of your growth.
How do you maintain regulatory compliance as an MRB?
Maintaining compliance is a big responsibility that will require your ongoing attention. It’s an extensive and complex process that includes multiple careful considerations, ongoing education, and precise data collection. You’ll also need access to reliable reporting software. First and foremost, you’ll need detailed insight into the federal, state, and local legislation that applies to the cannabis industry.
For example, it’s vital that you achieve BSA compliance. The Bank Secrecy Act (BSA) imposes strict regulation to prevent money laundering and terrorist financing. All US financial institutions have to follow it to make sure they’re not aiding these illegal activities. They have to collect data about transactions and report them to the authorities. To prevent problems with the law and keep your license from being compromised, a record of your money transfers should be kept and your financial operations should be correctly and consistently audited.
To facilitate compliance management, there are certain strategies that you can try. They involve meticulous planning, continuous learning, and strict monitoring. However, they’re ultimately worth it because they protect your company. Here are some tips to help you along:
Stay updated: Legislation is changing by the minute. Keep up with the latest changes by signing up for relevant newsletters and visiting the websites of government agencies, like FDA, DEA, and USDA.
Never stop learning: To succeed in such a dynamic field, you can never sit still. You and your team should attend seminars to learn new and improved compliance strategies.
Keep an eye on the competition: Analyze how your competitors do things. Is there anything they’re doing more efficiently? You may be able to apply the same technique.
Share your experience: Interact with peers from the industry. You can exchange views on successful techniques and discover novel ways of dealing with legal demands.
Partner with the specialists: Although banks are reluctant to work with cannabis operators, there are innovative financial networks that can meet your need for commerce solutions and automated compliance monitoring.
Where can I find streamlined commerce services for cannabis operators?
For reliable commerce support and strict adherence to regulatory compliance, get in touch with Confia. We’re a growing financial network that offers industry-specific services to businesses in the cannabis industry. Explore our membership options available to cannabis operators and go through our time-efficient application and approval procedures. You’ll soon gain access to our effortless platform and start managing your transactions smoothly.
As part of our comprehensive BSA program, we offer automated compliance reporting for filing, SOC-2 compliance procedures, and consistent monitoring of all transactions. In addition, you can have the full-scale backing of our financial services, including secure consumer payments, B2B and B2C transfers, payroll processing, and access to our excellent lending program. Reach out to us today to handle common compliance hurdles without hassle!
One of the biggest clouds hanging over the industry is the lack of access to cannabis business loans. Unlike other industries such as clothing stores or restaurants, there are a finite amount of cannabis lenders willing and able to fund the industry, and with that being said, cannabis companies are subject to risk premiums. Historically, operators have tried to rely on self-funding to kickstart their company in hopes to attract external funding sources after the fact.
One of the most astonishing issues cannabis operators face is how difficult the banks make it for employees to receive their paycheck. In an industry that supports 321,000 jobs, one would hope paying hardworking employees would not come with so much scrutiny. Employees are often questioned by their banks on their employment, and often times have their personal bank accounts shut down as a result of their employment in cannabis. 
Cannabis operators typically face the obstacles of inefficient commerce and compliance irregularities, which can seriously jeopardize their business growth. Confia can help you continue operating legitimately thanks to 
Aspiring entrepreneurs who are putting together a cannabis licensing application have a steep road ahead of them. However, entering this thriving industry can be very rewarding if you have the right expert support to rely on. Confia has a unique set of membership options for cannabis operators, which give you access to tailored, industry-specific financial services.
For example, it’s vital that you achieve BSA compliance. The 
For reliable commerce support and strict adherence to regulatory compliance, get in touch with