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Marijuana Merchants, You Can Get Business Funding!

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woman holding two paper bags with moneyLegalized marijuana sales are on the rise, and this is a great time to hop into the industry. While the sales are great, and the business earnings are great, it can be tough to break into the business. Even in areas where the legalization has been accepted, there are still issues with opening a legalized marijuana shop. While your local and state government is an obstacle, finding business funding is another elephant.

Marijuana business funding is a pain. It is tough to fund your own business, and it can be even tougher to find a bank or loan provider to provide you with a loan. A loan is a bad idea for any new or struggling business, but it is often the first place merchants go when they are in need of extra money. With a business loan, the payback process starts almost immediately, and the loan provider does not care if your business is succeeding. All they care about is getting their loan repaid, which will not happen if your business is still struggling. Because of this, many merchants are worse off than before they took out a loan.

To avoid this hassle, merchants should search for business funding. Business funding is different from a loan, because, well, it is not a loan. The application process is simple, as this is not a loan process. All you need to apply is a copy of your driver’s license, a copy of a voided check, a copy of your lease or landlord contract, and 3 months’ worth of business bank statements and plastic card processing statements. That is all that you need – and everything is more than likely in your office right now. Along with the seamless application process comes a quick acceptance, many times within 5-7 business days.

Most businesses need funding to get started, or to come out of a slump. Legalized marijuana businesses have the hardest time finding funding for the businesses, due to its “high risk” labeling in the banking and processing industry. Before applying or accepting any type of business funding, be sure to ask questions, and do not feel obligated to sign up for something that you feel is not right for you or your company.

Get Funding Today!

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Smoking Marijuana Outside of Work Hours can Still Get You Fired in Colorado

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jointColorado ruled in favor of legalizing cannabis, yet workers still need to remain cautious about using it. Businesses retain the right to fire employees who use marijuana, even outside of work hours. It’s up to each individual business to decide whether or not casual use of marijuana outside of work is permitted. Companies can legally perform drug tests at any given moment to determine whether or not their employees are using the drug.

The subject gained a lot of interest after a quadriplegic man from Colorado was fired from his job at Dish Network. He tested positive for the use of marijuana, which is against the company’s policies. Many have protested and debated this issue saying that the state has legalized it and he was clearly using it for medicinal purposes. Nonetheless, the state of Colorado still allows companies the freedom to choose whether or not their employees can use cannabis.

Cannabis Businesses are Still High Risk

Although the state has decriminalized the drug, businesses in the cannabis industry still remain high risk businesses. These businesses still need to search for marijuana business funding from specialized investors in order to get their business off the ground. Banks don’t like putting their trust into marijuana businesses due to the legal issues on a federal level.

As high risk businesses, the marijuana industry will continue struggling with these types of issues. If marijuana was similar to beer on a legal standing point, this would never be an issue. No company has the right to refuse employees to drink a cold beer when they go home after a long day at work, but it definitely is the case with marijuana.

So what’s to come from this? Most likely, companies will continue having the right to request drugs tests for many years to come. However, this may eventually come to a haul once the federal government decriminalizes marijuana and places it on a similar level to alcohol. If this were to ever happen, then employees would most likely be permitted to smoke marijuana without any risks of losing their jobs.

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6 States Where Marijuana is Legal but Hard to Get

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Marijuana American FlagMany states across America have decided to legalize marijuana for recreational and medical purposes. However, some states still make it quite difficult for consumers to get their hands on it. With marijuana payment processing accounts being difficult to get approved for and with numerous regulations, not all states make marijuana accessible regardless of it being legal. Here are 6 states that have legalized marijuana, but make it nearly impossible to buy.

Massachusetts

Cannabis has been legal in Massachusetts since 2012, but with tons of licencing issues, it has become nearly impossible to get a hold of. To this day, there has not been a single dispensary that has open its doors.

Minnesota

Minnesota has some of the strictest regulations for medical marijuana use in the country with a maximum of eight dispensaries and only nine accepted conditions that permit patients to use the drug. Plus, the drug cannot be smoked; vaping and pill form are the only two ways that marijuana is permitted in Minnesota.

Illinois

Marijuana became legal for medicinal purposes in 2013, yet it still has not opened up a single dispensary. Less than 2,500 patients are enrolled in the program and still cannot get their hands on any cannabis. Home growing marijuana is considered illegal, making it impossible for patients to use the drug to this day regardless of it being legal.

Delaware

Getting marijuana in Delaware is incredibly difficult since no dispensary has yet to open its doors. With a mere 200 enrolled patients and still no cannabis being grown, this is one of the states that has legalized marijuana without any options made available to patients.

New Jersey

New Jersey passed medical marijuana in 2010, but only opened its first dispensary in 2013. Today, only three dispensaries have been opening, making cannabis scarce and waiting lists long. Plus, the prices are roughly $500 per ounce of marijuana, making them the state with the most expensive weed in the country.

New Hampshire

Medical marijuana has been permitted in New Hampshire since 2013, yet no dispensaries have opened so far. Only five medical conditions qualify for the drug , home growing is not permitted and patients cannot even register for medical marijuana cards.

For marijuana payment processing solutions contact us today!

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Washington D.C. Bill Keeps Marijuana illegal for At Least Another 2 Years

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Washington DC MarijuanaWhile marijuana is becoming legal in more and more states, Washington D.C. seems to be regressing with their new bill to outlaw the drug until at least 2017. With this bill, there is no hope for cannabis to become legal any time soon. Nonetheless, marijuana advocates still believe that this is good news. More than 75% of Washington D.C. voters have voted in favour of legalizing marijuana. House has not placed a direct ban on the drug, which means they are open-minded and aren’t attacked pro-cannabis advocates.

Medical Marijuana Use

While medical marijuana use is legal in 25 states across America, it remains illegal with the federal government. This causes these businesses to be considered high risks for most banks, making it incredibly difficult to find a medical marijuana payment processing service. With such high risk, no banks want to work with these businesses, allowing them to accept cash only. Cash only businesses are risky businesses because they essentially need to carry around thousands of dollars at all times. It’s about time for the government to rethink their standing on this issue.

Not only does accepting cash only make marijuana businesses risky for the owners, but it also prevents the government from making additional tax dollars. If Washington D.C. were to legalize marijuana use, it would be predicted to be a $130 million dollar industry on a yearly business. This means $20 million dollars in tax dollar revenue for D.C. alone. Bringing in so many extra tax dollars could be great for the city, yet we still need to wait until 2017 before seeing this become a reality.

In the meantime, cannabis advocates are working hard to bring medical marijuana to more and more states. The DEA has even been informed to not raid dispensaries in states where marijuana is legal, which is a huge step forward for the federal government.

For medical marijuana payment processing solutions contact us today!

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Legalization of Oregon Recreational Marijuana Could Mean Big Bucks for Dispensaries

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Oregon sign with marijuana leafThe medical marijuana industry is waiting for Gov. Kate Brown to sign a bill into law that would allow the state’s 310 dispensaries to sell recreational marijuana. Medical marijuana dispensary owners are hoping the bill goes into effect as many are struggling to keep their doors open. The problem is that the Oregon market is extremely saturated with producers of medical cannabis who are fighting over a limited supply of medical cannabis patients.

The bill would allow existing dispensaries to decide between being medical marijuana distributors or recreational distributors. Recreational dispensaries would be allowed to sell up to a quarter-ounce of flower to customers or four non-flowering plants at once. The ability to sell recreational marijuana would keep many dispensaries afloat, and even expand the industry in Oregon. Both in-state and visitor demand could lead to sales that could be tripled or quadrupled if the bill passes. There is an estimated 1 million recreational consumers in Oregon. Plus dispensary owners think that recreational use would increase tourism, especially from Washington State, which could bring in millions of dollars.

Currently, the average gram in Washington costs between $25 and $30, while in Oregon MMJ prices stand at $8-$10. These lower prices could be enough to attract substantial tourism from the neighboring states. Still recreational facilities may not get rich quick. Under the bill, the state could impose a 25% sales tax on recreational marijuana. There may also be government fees for dispensaries, plus Oregon’s health agency could also introduce more fees and rules. Also rec stores will almost certainly be taxed at a higher rate than medical marijuana dispensaries. Whether or not marijuana distributors will see profits from recreational marijuana is yet to be seen until the bill is signed by the Governor.

If recreational marijuana is allowed in Oregon, dispensaries will need competent medical marijuana payment processing. The marijuana payment solutions provided by MMA will help grow your company’s business by giving your customers more ways to pay for your products. Learn more about expanding your customer’s payment options beyond cash.

For Marijuana payment Solutions contact us today!

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New MMJ Dispensaries Geared to Make a Ripple in U.S.

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MarijuanaIn the last 10 days, 3 states have opened MMJ dispensaries. The states of Massachusetts, Minnesota, and Delaware have seen their first medical dispensaries. Medical marijuana advocates are elated by the openings and believe that they will do wonders for the industry as a whole, but some state officials are skeptical about the positive affects the facilities can have on the local and stare economies, and on the population in general. Here’s a small glimpse at the impacts the new dispensaries can have on their states.

In Massachusetts, the new dispensary faces the potential of running out of supply as only one other dispensary is operating and there are over 9,000 registered patients demanding product. This is because Massachusetts is slow to approve licenses for dispensaries. Since the legalization of medical marijuana in the state, only one out of 15 licensed dispensaries have actually managed to open.

In Minnesota they have the exact opposite problem. There are only two dispensaries in the entire state, but they are struggling due to extremely low demand (there are only 65 registered patients). Their only hope is to get more patients approved for medical cannabis, but that depends on Minnesota doctors clearing more patients for use. So far most doctors in Minnesota have been very reluctant to clear patients to use medical marijuana.

As for Delaware, the state only has 344 registered patients. Even though the state legalized medical cannabis in 2011, it has been slow to open dispensaries. Right now, only one dispensary will be operational. Despite the fact that these states face a few obstacles, the momentum is still on the side of MMJs. 2016 promises to be a better year for dispensaries when even more states are expected to legalize or decriminalize recreational and medical cannabis.

If more MMJ dispensaries open next year with large or sustainable demand, it could mean a significant boost for the MMJ industry as a whole. Now is the time for you to investigate more marijuana payment processing options for your dispensary.  The marijuana payment solutions provided by MMA will help grow your company’s business by giving your customers more ways to pay for your products.

Learn more about expanding your customer’s payment options beyond cash today!

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Banks Remain Wary of Marijuana Businesses as Alternative Payment Processor Step In

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Marijuana and Dollar notesBanks have historically been mostly unwilling to work with different state-legal marijuana dealings across the US. Their cageyness has been founded on the fear of being implicated as cash launderers. This has traditionally forced marijuana-related businesses to trade exclusively on a cash-only basis, which always comes with some risks. It puts both the venders’ as well as the buyers’ safety at risk of being subjected to burglars.

Following the government’s gesture towards a free marijuana economy, some banks in the US are now opening their doors to businesses related to marijuana across the nation. They have however shown considerable caution in their acceptance of these business dealings. They remain wary of the dealings. Some of them have conversely continued to shutter the accounts run by marijuana businesses that’s presenting the marijuana merchants with challenging medical Marijuana payment processing across the country.

As a result, it encourages auxiliary account service providers such as MMA to step in and offer payment processing services to Marijuana dealers.

Details from a New Report

A new report from the Treasury Department’s Financial Crimes Enforcement bureau obtained by Dynamic Securities Analytics, a financial regulatory analytics firm now presents information regarding the undercurrents of the marijuana-banks relations over the recent business period.

The reported data reveals that financial bodies in different US states have filed over 1,700 reports on marijuana-related businesses in compliance with the FinCEN guidance. The guidance present details to direct the activities of the banks as they deal with marijuana related businesses. According to the report, this is the number of businesses being offered traditional banking services.

The businesses are said to be in full compliance with federal guidance and their various state laws according to the banks.

The FinCEN guidance directs that banks working with state-legal marijuana traders must report their undertakings in a report termed “suspicious activity (SAR)”.

The SAR has three classifications namely ‘limited’, ‘priority’ and ‘termination’. If a bank files the ‘limited’ SAR, it means that they are working well with the businesses related to marijuana and the businesses have not shown any evidence of violation of state laws or federal guidance.

In the recent report, over half of the total number of SARs reported (3,157) were classified as ‘limited’. Nearly the same number of banks are also said to be filing the ‘termination’ report. This means that they are quitting services extended to the marijuana related businesses.

This is their way of maintaining compliance with federal rules on money laundering programs. A total of 313 SARs filed were of the “priority” classification. They are banks that believe the marijuana businesses they are working with may have been in violation of certain state laws or the federal guidance.

Contact MMA for Medical Marijuana Payment Processing Solutions Today!

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