Big banks continue to treat cannabis-sector entrepreneurs differently from other sectors, but banking options are gradually improving.
Community Savings Credit Union announced today the launch of pre-approved business credit cards for its cannabis-related business members. This move marks a significant change in the financial services available to the industry, providing guaranteed access to credit cards for cannabis businesses in B.C.
Many in the legal cannabis industry face rejection from credit-card providers due to their involvement in the sector. Community Savings Credit Union CEO Mike Schilling has been advocating for changes to cannabis legislation, even speaking at an industry summit in Ottawa and meeting with political staff in the prime minister’s office and the office of the minister of finance.
Based in Surrey, the seven-branch credit union manages about $900 million in assets and has over 17,000 members, including 150 cannabis-sector companies.
"Cannabis businesses have operated without a fully functioning banking system for too long," said Schilling. "The industry was legalized five years ago, but big banks have ignored this sector’s needs. Credit unions like Community Savings have stepped in."
Community Savings offers three business credit cards: the No Fee Cash Back Visa, the Visa Low Rate Business Card, and the Visa Infinite Business Card. These cards offer various benefits, including cash back, low interest rates, and rewards and privileges.
Despite these improvements, cannabis sector companies believe they face discrimination from big banks, leading to a potential class-action lawsuit against Desjardins Federation, National Bank, Royal Bank, Bank of Montreal, TD Bank, and CIBC.
In the early years of cannabis legalization, many turned to small credit unions like CCEC Credit Union, which merged with Community Savings Credit Union in 2022. Business owners have long expressed frustration with how big banks treat them.
“It’s very frustrating,” said Bob Potter, CEO of Phytron Technologies Inc., in 2019. “How can companies attract outside money if they can’t deposit it in a secure financial institution?”
