Life is hard enough for business owners in the cannabis industry without the litany of banking woes they’re forced to work around. Acquiring a loan is almost impossible as most banks still don’t want to touch anything related to cannabis, and dealing in an essentially cash-only industry is a nightmare for everyone involved.
How is a business supposed to pay employees and rent without a bank account? Banks don’t want to deal with landlords walking into their branches haphazardly toting duffel bags full of cash. Even city governments are starting to second guess the idea of business owners showing up to city hall with large sums of cash at tax time. Proprietors often feel pressured into implementing “creative” (often shady or technically illegal) means to deal with the cash.
Managing compliance can take a whole team in itself — especially when every transaction is cash-based. Somebody has to be in charge of the various state track and trace programs — especially in a multi-state operation. Somebody has to be in charge of accounting — especially when navigating the ever-complicated waters of local, state, and federal taxes. These tedious-yet-essential tasks take up valuable time and resources, of which there is little to spare in a small company or start-up.
A Light at the End of the Tunnel
One technology that looks like a promising solution to some of these problems is blockchain. While blockchain is most frequently associated with cryptocurrency like the heavily hyped Bitcoin, this revolutionary technology presents countless applications, of which we’ve barely scratched the surface. While cryptocurrency may be a flash in the pan, every major player in information technology has made clear their intentions to embrace blockchain now and in the future.
At its core, blockchain is simply an immutable, shared ledger used to record transactions (blocks) that are then verified by many nodes across a network. The decentralized nature of blockchain makes it incredibly secure. It’s possible to report even faster via blockchain than it is with the current track and trace systems offered, which makes it perfect for instantly reporting real-time compliance info to state agencies and banks.
Efforts are already underway in a variety of compliancy-heavy industries to embrace blockchain in an effort to provide maximum transparency to financial institutions. By all accounts, the cannabis industry’s particular compliance protocol is one of THE strictest imposed across any industry, making it a perfect place to implement blockchain.
Bringing Blockchain to the Cannabis Industry
At the intersection of ecommerce and blockchain is CanSact. We are a SaaS provider with the capabilities to solve for two of the biggest problems for the cannabis industry – the need to remove cash from the process, and the need for transparency and ease-of-management across the supply chain.
We’ve partnered with a pro-cannabis bank operating nationally to help bring licensed business owners to market quickly, and to provide existing businesses with a marketplace to showcase their products to other businesses and consumers alike. That makes us the only cannabis marketplace to offer a legal and legitimate payment processing method with track and trace integration!We can also pre-pay business taxes from cannabis sales so businesses can stress less about their tax bill and how to pay it.
With the industry growing faster every day, it’s a green rush that business owners are going to need a lot of help capitalizing on. Explore your options, see what fits best for you and stay ahead of the market by partnering with people you trust.