Having helped clients through the whole cannabis permit procedure from beginning to finish on several occasions, I have selected on the main challenges to succeeding, and now accepting that cannabis permit. When you need a CBD merchant account, one of the things you’ll notice is all the credit card processors that are going to refuse to give you one. It’s a real problem for people who sell CBD edibles, hemp and cannabis oil, and other items in the marijuana industry. Fortunately, this doesn’t have to be a problem for you any longer. IPAYTOTAL will work with you on opening a CBD high-risk merchant account and keeping the account alive. Although every city or nation is different, these are the top 3 of the 5 common challenges a business will face regardless of where they apply.
1. Availability of Permits
The reality is that beside the fervor and focus that the legal cannabis industry receives, the legalization procedure in California has been disclosed at a fairly slow pace. As of this article, there only a few municipalities recognizing and accepting cannabis business applications for new enterprises. In most cities, licenses are capped to eliminate market saturation situation of cannabis businesses. In maximum cases when a city provides permits for commercial cannabis businesses, there are much more qualified applicants submitting applications, than there are permits accessible to be awarded. This shortage between permits sought and permits awarded is why the availability of permits, or lack thereof is guessed the single biggest challenge to getting a cannabis license.
2. Availability of Eligible Property
In every city that provides permits for commercial cannabis, also needs that these enterprises be located in eligible zones within the city. This has commonly termed as “green zones”. Most green zones within city limits are available in areas that are either allocated for commercial or industrial use, and always need a buffer between schools, day care centers, and other sensitive purposes. While figuring out the whether a building is residing in a “green zone” is a particularly straightforward process, locating and acquiring one of these structures at a competitive price could be extremely difficult. Due to the enthusiasm and fervor that has been brought with the growth of this new industry, prices for eligible real estate have grown significantly. Even when a compatible building is found, it is generally at a price that is far from unique and if bought, may provide an operation to be unprofitable. That being said, figuring out eligible property is difficult but possible, and is needed in order to submit an application for commercial cannabis permit.
3. Money / Capital
Availability of capital is an important factor resisting many businesses and individuals from successfully buying a cannabis license. Similar to any business venture, a cannabis business has its own ideal risks and gains. There is clearly no full-proof way out to purchase a cannabis license. Capital must be invested at risk to need a cannabis license. Cities generally require an application fee of ten to fifteen thousand dollars. This amount is non-refundable and does not guarantee a permit. Also, a property must be purchased before to the submission of an application. On average, the cost of acquiring into an eligible cannabis building is around twenty-five to fifty thousand dollars. An additional set of the application, such as site plans and security plans, will further list down to the cost of acquiring a license.
Has the law changed?
Now, it’s necessary to keep up with the ever dynamic legal landscape. Tom Angell of Marijuana Moment newly reported that Mitch McConnell declared that his proposed hemp bill shall be contained in the broad-ranging agricultural act of 2018. This brings shortly after Congress approved a non-binding agreement acknowledging the huge potential of hemp.
Besides federal law, stakeholders require to stay alert as to how the DEA feels about CBD that week. The DEA is generally changing its policy on this issue, whether that takes through an article on its website or an internal document. It’s mandatory to remain up-to-date on the DEA’s latest position on CBD.
Finally, keep tracking state law. This is rather the hardest to achieve because there are 50 states who each may treat CBD in a distinct manner. Still, if you are an engaging business in a state, it’s upon you to be updated on the rules.
CBD law is highly complicated and this list only peeling the surface as to what you require to look out for. If you have other questions, give our firm a call at +44 800 776 5988 to see how we can help your CBD business grow.
Making the right choice for CBD Merchant Account Provider
Even though your CBD merchant business is perceived as a high risk one, we at Ipaytotal render you with the important services. Our huge experience in this industry makes it certain for us to set up your merchant account in a time-bound and secure manner.
We render out you with the best assistance that supports you to thrive your business. This makes it comfortable to get better rates, quick funding, and finally, the prevention of issuer declines.