Well worth a read if you want to catch up on the state of British banking for cannabis / hemp products… it’s not good!
Here’s the introduction
Banks, insurance companies and payment providers are refusing to work with cannabis-related companies throughout the UK, hampering the growth of the industry and leaving many in financial limbo.
BusinessCann recently reported that Metro Bank, previously thought to be one of the few UK banks open to working with cannabis businesses, was in the process of closing all accounts related to CBD.
This latest blow to the industry unfortunately represents the tip of the iceberg in terms of the troubles companies face in securing basic services for their businesses to run legally and securely.
According to a number of sources who spoke to BusinessCann, not only are applications often rejected with little explanation or recourse, but businesses often encounter widespread inconsistency during the process, with little rhyme or reason to which applications are successful and which are rejected.
Without a business bank account, not only are companies unable to access financial services, but as a limited company they are unable to operate legally.
Furthermore, without access to even the most basic employers liability insurance, businesses could face fines of up to £2500 for every day they operate without cover.
Banking
BusinessCann has approached a number of the UK’s leading banks, including Natwest, Barclays, HSBC and Lloyds to determine their policy on working with CBD and cannabis related companies.
After receiving no comment from their media teams, BusinessCann approached the banks’ business accounts team as a start-up CBD company looking to set up an account.
Read more
Reflections Across the Pond: Banking Blues for UK Cannabis industry
