Community Savings, a credit union that serves the cannabis industry in British Columbia, has announced the launch of pre-approved business credit cards for its cannabis members. This is the first time that cannabis businesses in BC have guaranteed access to credit cards, a long-overdue change in the financial services available for the industry.
Credit cards are an essential financial product for businesses, but obtaining a business credit card for cannabis businesses has been a highly discriminatory process until now. Many cannabis businesses are rejected by credit card providers solely because of their legal business in cannabis. Community Savings has successfully campaigned for policy change to ensure cannabis businesses have credit card access.
This is a significant milestone, changing the way access to basic financial services is provided to cannabis businesses in BC. Community Savings is proud to now pre-approve every one of its cannabis members to ensure access to this basic payment product.
The benefits of pre-approved credit cards for cannabis businesses
Community Savings offers three business credit cards with a range of benefits. The No-Fee Cash Back Visa allows you to earn cash back for your business’s regular purchases. The Visa Low Rate Business Card features a low annual fee and low interest rate, and the Visa Infinite Business Card offers valuable rewards and first-class privileges with a competitive annual fee and a limited-time 5,000 welcome bonus point offer.
Other card benefits may include zero liability fraud protection, purchase protection and extended warranty, trip cancellation, interruption insurance, and lost or delayed baggage protection. These features can help cannabis businesses manage their cash flow, expenses, and risks more effectively.
The challenges and opportunities for the cannabis industry in Canada
Five years after legalization, access to basic financial services is just one barrier facing Canada’s legal cannabis industry. Notably, cannabis growers and producers pay federal taxes on a staggering +30% of top-line revenue, in addition to the overly burdensome regulatory compliance costs experienced by all cannabis businesses.
Despite the challenges, the cannabis industry has grown about 10% year-on-year since legalization and supports the jobs of nearly 100,000 Canadians. With the right legislative framework, the industry has an opportunity to grow, increase its economic competitiveness, and meet global demand.
Community Savings is one of the few credit unions that have stepped in to fill the gap left by the big banks, which have ignored this sector’s needs. Every day, Community Savings works with its members to help grow the cannabis industry, starting with access to the right financial services.