What is Cannabis Cash Management?
Regardless of the type of business, cash management is a vital component of the operation. In cannabis, cash management can look a little different from that of other businesses, but even businesses in the cannabis industry have similar needs when it comes to cash management services. Take a closer look at cannabis cash management, what cash management services look like in cannabis, and more below.
What Is Cash Management in Cannabis?
Cash management, in the general sense, is simply the management of a business’s cash flow. This means accounts are in good standing, business bills are paid in a timely manner, and operational costs are kept in check. In cannabis, all of this applies. However, most cannabis operations deal with more actual cash than digital cash due to restrictions on payment types.
What Are Cash Management Services?
Cash management services are services offered by financial institutions that provide various tools and resources to optimize the cash flow of the business. Usually offered by a bank where the business owner has an account, these services can be exceptionally valuable for keeping operational costs low and supporting business sustainability and growth.
Cash management services can include:
- Online payment portals
- Electronic payment systems
- Bill pay services
- Cash flow monitoring
- Cash flow forecasts
- Business lines of credit
- Escrow services
- Remote deposit capture
What to Look for in Cash Management Services in Cannabis
When it comes to cannabis cash management services Massachusetts is lucky enough to have a handful of financial institutions that can help prospective business owners. For example, Bay Coast Bank offers business cash management solutions, including merchant services, wire transfer services, and remote deposit capture. Others that offer similar services to those in the cannabis business include PAG partners like GFA Federal Credit Union, Avidia Bank, and Needham Bank.
The number one thing to look for in cash management services in cannabis is that the institution works with those in the industry. Cannabis banking can be a bit different from other types of banking due to federal regulations. Therefore, not all banks offer accounts or cash management services to those in the industry. Other elements to consider include:
- Does the bank provide the types of cash management services your business needs?
- What are the fees for certain types of services, such as wire transfers or account reconciliation?
- What kind of customer service does the bank provide? Is communication easy?
Cash Transport: A Crucial Component of Cannabis Cash Management
While the roles are beginning to show a bit of flex, in the cannabis business, cash remains king. Therefore, dispensary owners can deal with large volumes of cash in their place of business on a daily basis. Plymouth Armor Group makes cash management a simpler feat with secure cash transport services to get your cash from the store to your banking institution of choice. If you need help with ash management, cash transport, or even finding cannabis banking, reach out to discuss how we can help.