Community Savings Credit Union has launched a new account that offers affordable and accessible banking services to cannabis producers in BC, who have been facing unfair fees and stigma from other financial institutions.
The 18/6 Account: A Game Changer for Cannabis Cultivators
The new account, called the 18/6 account, is named after the optimal light/darkness growing conditions for cannabis. It can be opened and approved online, enabling cannabis businesses across BC to benefit. The account features a low $200 monthly fee after a $150 application fee (for a limited time). Community Savings will refund the application fee after six months.
The 18/6 account is designed to meet the needs of cannabis producers, who often struggle to access working capital and receive payments early. The account also offers invoice factoring, a service that allows cannabis producers to sell their invoices to Community Savings at a discount and receive cash upfront. This helps them improve their cash flow and grow their business.
Community Savings: A Leader in Supporting the Cannabis Sector
Community Savings Credit Union is BC’s largest fully unionized credit union and is dedicated to being the credit union of choice within the working community. It is also one of the first credit unions to acknowledge the cannabis sector proactively and provide fair and affordable banking services to cannabis retailers and producers.
Community Savings has 18 percent of the market share of BC cannabis retailers with its affordable account offering and launched the 18/6 account for cannabis cultivators today. The credit union believes that access to equitable banking should not be up for question and that cannabis businesses should have the same rights and opportunities as any other legal business.
The Cannabis Industry: A Growing and Diverse Sector
The cannabis industry in Canada has been growing rapidly since the legalization of recreational cannabis in 2018. According to Statistics Canada, the cannabis sector contributed $8.6 billion to the Canadian economy in 2020, up 120 percent from 2018. The sector also employed 67,000 people in 2020, up 266 percent from 2018.
The cannabis industry is also a diverse and inclusive sector, with many women, Indigenous people, and people of color involved in various roles and activities. According to a survey by Cannabis At Work, 37 percent of cannabis employees are women, 6 percent are Indigenous, and 15 percent are visible minorities. The survey also found that cannabis employees are highly educated, with 74 percent having a post-secondary degree or diploma.
The Future of Cannabis Banking: More Innovation and Collaboration
The launch of the 18/6 account by Community Savings is a significant step towards improving the banking situation for cannabis producers in BC. However, there are still many challenges and barriers that the cannabis sector faces when it comes to accessing financial services, such as regulatory uncertainty, compliance costs, and social stigma.
To overcome these challenges, the cannabis industry and the financial sector need to work together to create more innovative and collaborative solutions that can benefit both parties. For example, the Canadian Credit Union Association and the Cannabis Council of Canada have formed a partnership to advocate for better banking policies and practices for the cannabis sector. The partnership aims to educate credit unions and regulators about the cannabis industry and its needs, as well as promote the benefits of credit union membership to cannabis businesses.
By working together, the cannabis industry and the financial sector can create a more supportive and sustainable environment for cannabis banking and, ultimately, for the growth and development of the cannabis sector in Canada.