A BC-based credit union has announced a new offer for its cannabis members, giving them guaranteed access to pre-approved business credit cards. The offer is an industry-first in Canada, and aims to address the long-standing discrimination faced by cannabis businesses in the financial sector.
Cannabis businesses in Canada have been struggling to access basic financial services since the legalization of the industry in 2018. Despite being legal and regulated, many cannabis businesses are rejected by banks and credit card providers, solely because of their involvement in the cannabis sector. This forces them to operate in cash, which poses security risks, operational inefficiencies, and tax compliance issues.
The main reason for the reluctance of banks and credit card providers to serve cannabis businesses is the fear of legal repercussions from the US, where cannabis remains illegal at the federal level. Banks and credit card providers that operate in both countries could face penalties or sanctions from US authorities if they are found to be facilitating transactions related to cannabis. As a result, many of them have adopted a conservative and risk-averse approach, and have avoided the cannabis sector altogether.
The Solution of Community Savings Credit Union
Community Savings Credit Union, a BC-based credit union with over 17,000 members, including 150 cannabis businesses, has decided to take a different approach. The credit union has been advocating for policy change and regulatory clarity to ensure cannabis businesses have equal access to financial services. The credit union has also been providing banking and lending solutions to cannabis businesses, such as chequing accounts, term deposits, and mortgages.
The credit union has now taken another step forward, by launching pre-approved business credit cards for its cannabis members. The offer is an industry-first in Canada, and gives cannabis businesses guaranteed access to credit cards, regardless of their credit history or financial situation. The credit union offers three types of credit cards, with different benefits and features, such as cash back, low interest rate, rewards, and insurance.
The credit union says that the offer is a long overdue change in the financial services available for the cannabis industry, and that credit cards are an essential financial product for businesses. The credit union also says that the offer is a result of its successful campaign for policy change, and that it hopes to inspire other financial institutions to follow suit.
The Reaction of Cannabis Businesses
Cannabis businesses in BC have welcomed the offer from Community Savings Credit Union, and have praised the credit union for its leadership and innovation. Many cannabis businesses have expressed their frustration and dissatisfaction with the big banks and credit card providers, and have said that they have been treated unfairly and differently than other businesses. Some cannabis businesses have also said that they have been forced to use personal credit cards or alternative payment methods, which have higher fees and lower limits.
Cannabis businesses have also said that the offer from Community Savings Credit Union will help them grow and expand their operations, and improve their cash flow and financial management. They have also said that the offer will help them access new markets and customers, and enhance their reputation and credibility. They have also said that the offer will make their lives easier and safer, and reduce their reliance on cash.
Maria Garcia is an award-winning author who excels in creating engaging cannabis-centric articles that captivate audiences. Her versatile writing style allows her to cover a wide range of topics within the cannabis space, from advocacy and social justice to product reviews and lifestyle features. Maria’s dedication to promoting education and awareness about cannabis shines through in her thoughtfully curated content that resonates with both seasoned enthusiasts and newcomers alike.
