Whether you like it or not, in all probability your financial institution has marijuana proceeds flowing through its doors in some capacity. It is naive to believe otherwise.
Marijuana proceeds are being spent throughout our economy. One issue is that many bankers only view marijuana related businesses as dispensaries, cultivators, infused product manufacturers, and testing facilities. They fail to consider all of the other types of entities that derive revenue from the space. I use the generally accepted three tier classifications of marijuana related businesses (MRB’s):
Tier I – Product touching, Tier II – Businesses directly supporting or whose primary customers are Tier I MRB’s, and Tier III – Those that have incidental business with Tier I and Tier II MRB’s. It is easiest to locate Tier I MRB’s as they are typically all licensed by the state. Tracking down and determining Tier II and III MRB’s become more difficult. If a lightbulb manufacturer is selling bulbs to a cultivator, are they a Tier II or a Tier III MRB? The short answer is “It depends”.
Full Article / Source: www.cuinsight.com