Category Archives: Marijuana Business Funding

The Issue with Rushing Legalized Pot Legislation

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480007355There are simple ways to tell if a driver is drunk. There is a breathalyzer, a speech test, and a walking test. But, what happens when a policeman comes across a stoned driver? What test are there? No one — not even highway patrolmen — knows precisely how stoned a motorist can be before he’s dangerously under the influence of cannabis. Unlike with liquor, there’s no 0.08% blood alcohol equivalent for marijuana. There’s not even a common Breathalyzer to measure drugged driving. And there’s nothing around the corner. That’s one problem with rushing to legalize marijuana for stoner use.

This is what many proclaim is the major issue for those who want legalized marijuana. Proposition 64 on the November ballot would legalize marijuana use for anyone 21 and older. And all polls show the initiative winning by a landslide, supported by roughly 60% of voters. And that’s great for many: for the total economy, for those who want to smoke it, and for merchants who want to sell it. However, the questions are still around. What is the legal limit for those who are driving stoned? One blunt? What about those who vape? This is the problem. There aren’t any clear cut laws for this – and it is going to be a major issue.

And there are those that argue that it isn’t an issue now with those who use it for medicinal purchases, but this is a totally different thing. Medical marijuana is regulated by use – unlike recreational marijuana, which can be purchased daily if one chooses. It’s not saying that someone who wants to smoke pot daily shouldn’t – after all, it could be legal in a few days. But what people are hanging onto is the fact that this legalization can boost the economy of a huge and struggling state.

The taxation of legalized marijuana often tops that of cigarettes – and this is set to boom the economy if it is voted in. Come January, the economy of California may flip – and even if someone cannot take their legalized pot out of the state, millions travel to California every year for vacations, so at least some vacationers are liable to purchase pot and help out the state economy.

Marijuana Cigarette Startups – It Is Now a Reality!

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medicinal marijuana merchant account servicesPot shops are still taboo in many places in the ‘States, so just think about the reception of marijuana cigarette companies. Yeah… for some it’s not good. For others, it’s great! Waling in, buying the pre-rolled marijuana cigarettes that are all ready to smoke is a dream for some – and it’s now a reality, thanks to MCIG Rollies. Can you do the same thing? Sure. As long as you have the right support team in place.

I don’t mean a good set of friends or your mama. I mean the right business support team: Staff, harvesters (if you don’t harvest yourself), and a startup marijuana business funding source. The latter may sound like a bank loan, but a bank loan it is not. In fact, the bank is the worst place you can go to ask for business funding for a legalized marijuana business. Since marijuana is still a federally illegal drug, and the banks are overseen by the Feds, your answer for a loan request is going to be a big, fat “No”.

Instead, look for a marijuana merchant funding provider, such as MMA. With merchant funding, you can get the funds that you need without the hassle of providing collateral, providing a lot of paperwork – and perhaps worst of all: the high bank loan interest fees. We hate that, right? Well, without this, you are left with the funds that you need, and an easy way to pay the funds back. With business funding, you pay back a small amount at a time, and only when you process a credit card payment. It’s as simple as that! If you go a day or two without a credit card payment, you do not pay. If you have a day where you process 30 credit card payments, you pay a small amount each time. You don’t lose money, and you pay back the funds in a timely manner.

Startup marijuana businesses come in many forms – and the hottest guy on the market is the pre-rolled marijuana cigarette merchant. This is totally doable – if you get the right funding. Be sure to get your funding needs from a marijuana business funding provider, and avoid other costly options.

Welcome to New York, Where Marijuana Merchants Are Left Without Business Funding

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marijuana banksEven though New York has legalized medical marijuana sales and usage, merchants are still having issues finding a marijuana business funding source. While most of the major US banks are headquartered – or have offices – in NYC, they are turning down applications from these merchants, due to its stance in the Federal law. Banks are regulated by the Feds, and marijuana is still illegal in the Feds’ eyes, so it is only natural that the banks want to protect themselves. However, it is legal in NYC, and these merchants must have a way to process payments.

With the amount of controversy surrounding this issue, it would seem that NYC is snowed under with dispensaries. The fact is, there are only five. Yes, five legalized medical marijuana dispensaries. It seems as though five may not do much damage to a bank or processor, but you have to consider that the goods are not legal in the Feds eyes, and that one chargeback can send a company spinning. One of the licensees is the talks with a processing source, and another is positive that they will find a source. The ability to accept plastic card (i.e. debit and credit card) payments tremendously helps businesses, and medical marijuana businesses are not different. Besides the ease of payment acceptance, it is also safer. “Cash Only” businesses are targeted, and once they money is gone, it’s gone.

Medical marijuana merchants from the 30+ states in which it is legalized are also having issues finding a cooperative marijuana business funding source. From payment processing to business cash advances, it is tough finding anyone to deal with your business. Luckily, there are some available, such as MMA, who offer up service and expertise in the industry. Regardless of who you choose, you need to make sure that they are indeed experienced in the industry, because this industry is one of the fastest to change, due to ever-changing states laws. Dealing with the local government is tough enough, but many times these processors must deal with the Feds, as well. You need to make sure that your processor will not back down and dump your account when the government comes calling. This has happened, and it leaves the merchants, the patients, and the local economy is a mess.

Contact us for Marijuana Business Funding today!

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Marijuana Business Funding – California Businesses Await Statewide Regulations

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Marijuana Business FundingMedical marijuana is not new to the state of California. Although California was the first state to legalize medical cannabis in 1996, it never managed to establish statewide regulations on the medical cannabis industry. As a result, a mishmash of local rules were put into place that vary depending on the municipality or county.

The lack of regulations has led to a lot of uncertainty for businesses. On top of the general confusion in the market, there is also a continuous fluctuation of companies. Companies start up only to be shut down by anti-cannabis officials. This confusion and inconsistency in regulations is a statewide problem. If a regulatory scheme could be adopted statewide, it would help to stabilize the country’s largest MMJ industry.

At the beginning of September, it was announced that California was just days away from approving statewide regulations on its enormous medical cannabis industry. With the legislative session set to adjourn on Sept. 11, lawmakers and stakeholders are under a lot of pressure to work through negotiations and strike an agreement.

The key to reaching a solution will be appeasing all of the stakeholders, which includes industry leaders, law enforcement representatives and healthcare officials. All while conforming to new proposed bill language released by Gov. Jerry Brown’s office.

According to Sean Donahoe, an industry political consultant, “What’s been happening for at least the last two years is we’ve been trying to smoke out the governor – pun intended – as to what his preferred regulatory approach might be”.

While the governor’s bill language is likely to undergo further revisions, there have been hints as to what the bill might include. According to various sources and the East Bay Express’s review of Brown’s draft:

  • There would be a dozen state business licenses to choose from for businesses in the industry including: cultivator, dispensary, manufacturer, testing lab, and more.
  • Companies would be limited to two licenses each. A single company would not be allowed to grow, dispense and manufacture other goods, such as edibles. (However, there would more than likely be exemptions for the two-license cap for existing businesses that are currently conforming to separate local mandates).
  • Organic certifications would be put into place, and testing would more than likely be implemented and required.
  • Local governments could still possess the ability to ban commercial marijuana activity if it so desired.
  • Growing would be limited to one acre, or 20,000 square feet (the paper did not specify whether or not this would apply to outdoor or indoor grows).
  • There could be requirements that medical cannabis must be sold in the geographic region in which it was grown.

While the next steps involved are unclear, the specific regulations will be left to rulemaking under the authority of one or more state agencies. The governor reportedly preferred to choose a bigger picture regulatory bill while leaving the majority of the details to administrators. While the governor’s bill will more than likely undergo further revisions, many are optimistic in the progress that is being made.

In the words of one staffer, “This is the farthest any of the cannabis bills have come in the past few years, ever”.

The issue of regulation is obviously a big obstacle for businesses to overcome. Finding business funding is even more so. Many businesses have turned to marijuana business funding from high risk merchant account providers. Since business funding is not a loan, the application process is simple. Basic documentation is required, and the acceptance time is quick – sometimes in as little as 5-7 days. This has made marijuana business funding an attractive option as businesses wait for regulation issues to be addressed and decisions to be made.

Contact MMA for Marijuana Business Funding today!

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