Oct 5, 2023
Tired of Managing Your Banking Relationships? Manage Your Cash Instead
The tug of war between state legalization and federal criminalization makes the logistics of running business heavy with difficulty. If you’re lucky enough to have a banking relationship, I’m sure it’s plagued by uncertainty and upheaval. The strain this places on canna-businesses is an unfortunate consequence of a gigantic industry operating in a nebulous space between legal and illegal – the parameters of which are in a constant state of flux and left to a cranky bureaucrat’s whim.
On the regulatory side, banks are federally forced to hold no more than a certain cap of deposits in any one industry – which overflows, especially during the holidays, when banks don’t correctly forecast the amount of deposits from canna-businesses. This oversight forces unpredictable account closure with little to no warning, maybe 10 business days at best, which we can all agree is a bat-shit way to be forced to operate.
Source: Head Quest Magazine