Pot “taxes” are in almost every state that has it legalized for recreational or medical usage. However, LA toyed around with the idea of putting an actual tax on this November’s voting ballot. Any tax can cripple a new marijuana business, and this can leave some needing funding for their medical marijuana businesses. This brings a completely new set of struggles for merchants – leaving the “could’ve been” tax a small problem.
LA county supervisors wanted a 10% tax on all medical marijuana facilities in the county. This barely passed the county supervisor’s vote, which could have been a big reason it isn’t on the ballot after all. While many can understand a higher tax on a recreational marijuana dispensary, medical marijuana dispensaries are a legitimate need – it would be like taxing a traditional pharmacy, to many. That wouldn’t happen so why should this? Uproar has quashed this – at least for right now – but the question still remains what would happen if it did? How would one find medical marijuana business funding? Well, the bank is definitely not your answer.
The bank probably will laugh you out of the building if you try to obtain a loan for a marijuana business. This is because banks are ultimately controlled by the Feds, and the Feds still consider marijuana – even medical marijuana – illegal. This means that the banks would be funneling money for an illegal purpose, which is something that they do not want to do. This can leave you in a jam. However, the best thing to do when you are in need of business funding is to contact your merchant account provider. If you have a merchant account it is probably a “high risk” merchant account, and many of these providers offer cash advance programs for their merchants. With these programs, you can obtain funds needed – but without the hassles of a loan. There is no collateral, no high interest fees, no fear of the Feds looking into your business. Repayments are made simply, as well. For repayments, your merchant account provider will take a percentage from your credit card sales. No sales, no payment. This is the fairest way possible to get funding for your business.
When you are in need of medical marijuana business funding, look no further than your merchant account provider. Contact them today to learn of their offerings.