For as long as cannabis has been a legal business, it’s also been an exception. Operators have been asked to build multimillion-dollar companies without access to the financial tools every other industry takes for granted: basic banking, lines of credit, and property loans. And for just as long, they’ve been told to wait. Wait for federal legalization. Wait for Congress to act. Wait for cannabis to be treated like any other regulated market.
It’s time to admit the truth: Washington isn’t moving fast enough. We can’t expect long-term financial security to come from federal reform. Instead, it’s going to have to come from the people and companies working in the industry right now, developing tools that work with the restrictions and meet businesses where they are.
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Over the past several years, financial service providers and ancillary businesses have built systems to safely move and manage cash, provide limited lines of credit, and create new mechanisms for investment – all within the boundaries of existing law. Tools like Smart Safe, which streamline how cannabis businesses handle and secure large volumes of cash, are helping operators function more efficiently in a system that still requires them to deal mostly in physical money. These innovations aren’t just stopgaps; they’re the foundation of a modern cannabis economy.
One of the next frontiers is expanding credit access for property ownership. Right now, it’s extraordinarily difficult for cannabis operators to buy the real estate where they run their businesses. Without access to conventional financing, many are stuck leasing, which limits long-term stability and wealth-building.
As the industry matures, financial innovation has to move in lockstep with it. The most effective solutions come from collaboration, when service providers listen to dispensaries, cultivators, and manufacturers about what they actually need. Whether it’s better expense management tools, streamlined payment options, or tailored credit products, real progress happens when the people building financial systems work directly with those who will use them every day.
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For example, the industry must address the issues it has with accounts receivable and late payments. According to Whitney Economics, U.S. cannabis operators carried roughly $3.8 billion in delinquent payments in 2023, equal to about a month and a half of total legal cannabis revenue. Those overdue balances make it harder for businesses to pay taxes, manage debt, and keep operations stable. Yet, solutions are emerging. Payment tools and financing programs are beginning to fill this gap, helping businesses smooth cash flow and ensure more predictable payments.
But it’s not enough to just make the tools; as service providers, we must also educate business owners on the options they have available. The reality is, cannabis operators are often so busy navigating state regulations and compliance hurdles that it’s hard to keep up with the evolving landscape of financing options. Yet understanding these tools and how to use them can make a huge difference in how a business grows and sustains itself.
Expanding financial literacy within the industry isn’t just good business; it’s key to long-term stability and professionalism.
Federal reform will come eventually. But waiting for it has already cost the industry too much time. The cannabis businesses that will thrive are the ones that take advantage of the financial tools already available, work with partners willing to innovate within existing limits, and push for creative solutions that make operating a little easier and the future a lot brighter.
*This article was submitted by a guest contributor. The author is solely responsible for the content.