One of the banes of having a marijuana-related business is the lack of proper access to banking and finance. Even if a group of bipartisan senators has already proposed a bill prohibiting the federal government from going after banks working with weed companies, many banks are still hesitant to provide loans and open accounts for marijuana businesses because weed is still considered illegal in the federal level. These banks run the risk of getting into hot water with the authorities.
That is why Kind Financial, a California-based provider of software and financial services for cannabis businesses, is seeking to solve this banking problem. It has partnered with Link to Banking, a financial compliance consultancy that can help banks become more at ease with accepting cash from weed businesses.
Link to Banking’s software is integrated with Kind Financial’s Agrisoft, a seed-to-sale software that makes it easier for pot companies to comply with state regulations. Each cannabis plant is assigned a barcode and RFID tag for Agrisoft tracking purposes. The information in the software must correlate with what’s in the grow house so that the state will not revoke the company’s license. Banks can also monitor whether their clients’ bank deposits match up to their sales and total yields, making sure that there is no money laundering involved.
“Coupled with customized reports, this system will provide banks with all the necessary tools they need to keep a pulse on their cannabis-related customers’ day-to-day activity,” said Robert Caseres, president of Link to Banking.
Although Kind Financial co-founder and CEO David Dinenberg refused to name the weed companies his firm will be working with, he said that client beta testing is already underway.
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