The world of finance can feel like a bit of a wild ride for professionals working in the cannabis space. Because of the unique challenges tied to handling money associated with the industry, customized financial solutions are key to feeling comfortable and protected while also making the most out of your wages.
One of the trickiest challenges for industry professionals is the lack of access to regular banking services. Thanks to federal prohibition, most banks steer clear of anything related to cannabis. They’re worried about becoming entangled in potential legal issues, and that’s why cannabis-friendly banking options are few and far between in the traditional financial landscape. Consequently, it may be harder to establish credit, get loans for large purchases like cars and homes, or earn returns on your savings.
Nevertheless, specialized financial solutions exist to serve hard-to-bank professionals like those working in this industry. You just need to know where to find them. The key is locating a financial institution that treats all customers equally … even if some of them happen to work in a state-legal industry selling a substance that is federally prohibited. Banks like these offer not just stability but also a sense of acceptance and understanding.
Here are some helpful tips for finding and working with a safe, secure financial institution that will value your business, regardless of the industry in which you work.
Find the right bank
The most critical banking step an industry employee can take is to find a financial institution that fully embraces their profession. It may require some searching, but cannabis-friendly banks do exist. Working with an institution that explicitly deals with the industry means you won’t have to be secretive about what you do for a living or the company that employs you. Executives, entrepreneurs, and rank-and-file employees all have experienced unexpected account closures and/or loan denials when the nature of their business came to light. Don’t set yourself up for that kind of headache by trying to hide your industry from a traditional institution.
Remember that certain life events—like applying for an auto loan, getting married, or pursuing a mortgage—can trigger scrutiny from traditional banks. Avoid that scrutiny by working with a financial partner that will meet you where you are on your financial path and guide you during significant life events and financial milestones throughout your career.
Repair your credit
Once you find a supportive institution that understands the diverse needs of industry members, take advantage of any available financial support, guidance, and educational resources the institution offers. Like any other rapidly evolving industry, cannabis can be a financial roller coaster, and it’s not uncommon for people who work in the industry to bump into credit snags.
If you need to repair your credit, the right institution should be able to advise you about how to go about the process most effectively.
Work with your banking representative to understand what your personal credit rating means and how it might impact more than your ability to borrow money. Address any debts head-on, because they won’t magically disappear. Negotiating with creditors to settle fees, reduce balances, or establish payment plans is a viable option that often is overlooked and underutilized. A good banking representative can help you do that.
Many institutions now offer valuable financial education resources, including internal credit monitoring, budgeting tools, and savings goals. Options for debt consolidation, personalized budgeting, and building savings should be readily available. Some institutions even have introduced second-chance accounts and removed overdraft fees to create a more supportive banking environment.
Save for the future
Remember that any credit is better than no credit. Building and improving credit is an important step toward financial stability and growth. Additionally, explore options for saving money in a high-yield savings account, which can provide better returns compared to standard savings accounts.
Basic savings accounts, premier checking accounts with exclusive perks, high-yield savings accounts, and high-yield certificates of deposit are all tools that can help industry professionals develop a firm financial foundation.
Despite the unique challenges posed by the cannabis industry, it is possible to find safe and supportive financial communities. By seeking out institutions that understand your needs, offer guidance and support, and educate on opportunities to improve credit and save as a cannabis professional, you can take control of your financial future.
Natalie VanderVegt is the member outreach and engagement manager at Salal Credit Union. She specializes in developing programs that deepen member relationships through a combination of market research, direct member feedback, and a keen focus on the end user experience.
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