It’s no secret that dispensaries and other cannabis businesses must handle large amounts of cash. There are, however, some tools and tactics that can ease that burden.
Munzer Sukhun, Vice President, Business Services
In cannabis retail operations, efficient cash management is crucial—for both the safety of employees and for regulatory compliance. Dispensaries handle substantial amounts of cash every day, and the associated risks are significant. Beyond retailers, cannabis cultivators, processors, and product manufacturers face a similar struggle in this cash-heavy industry.
Access to traditional banking services is limited for cannabis businesses due to ongoing federal illegality and regulatory concerns. That leaves many businesses with vast amounts of cash to handle, manage, and store on-site. Here at Salal Credit Union, we recognize the importance of secure and efficient cash management solutions for the cannabis industry, and have developed specialized programs tailored to the needs of cannabis businesses—and the people who work for them.
The Right Equipment
For cannabis business owners, let’s start with the equipment. To enhance the security and speed of cash transactions, cannabis companies handling large amounts of cash should invest in proven pieces of technology: smart safes, cash recyclers, and ATMs.
Smart safes are connected to systems that integrate with point-of-sale (POS) systems or directly with bank accounts or cash logistics partners such as AXIOM and Empyreal. They provide dual entry methods—key and combination—that ensure that cash is both secure and regulated. Additionally, with Salal, they may be eligible to receive provisional credit, which is a huge benefit. For example, if a retailer deposits $10,000, they don’t have to wait for the physical pickup of cash to access those funds. The expedited access ensures liquidity and streamlines cash flow management.
Cash recyclers are similar to ATMs. They allow for the secure deposit and withdrawal of cash so money stays within the dispensary’s system. This is particularly beneficial to our partners in rural areas where the cost of transporting cash is prohibitively expensive. By reusing cash within the system, they can significantly reduce transportation and handling costs, all while minimizing risk.
A similar strategic approach is the use of customer-facing ATMs within dispensaries. This method not only recirculates cash, but also reduces the frequency and cost of collection services. A dispensary manager can load $20,000 into an ATM to enable customers to withdraw cash that is then spent within the same dispensary. The cycle minimizes the amount of cash that needs to be handled and transported externally.
Partner With Cash Logistics Providers
In order to ensure the secure transfer and validation of cash deposits, dispensaries and other cannabis operators should partner with reliable cash logistics providers. These types of companies play a critical role in helping businesses securely manage their cash. The safe transport of cash from the retail storefront to the financial institution, where it is deposited and utilized for transactions like ACH transfers, checks, and wire transfers, is essential for business survival—and success.
Simplify Transactions
In an industry where financial transactions can be cumbersome due to the need for stringent tracking and invoicing of every single transaction, Salal’s cannabis banking program offers a streamlined solution. By eliminating the need for invoices for each transaction and validating funds that can be directly traced back to sales, the process is simplified immensely. Operational needs are supported, and administrative burdens are drastically reduced so dispensary owners and staff can focus more on growth and not just financial logistics.
Effective cash management is vital for cannabis retailers and other industry operators facing the dual challenges of high cash volume and restrictive banking regulations. By using smart safes, cash recyclers, and ATM technology—along with specialized cash logistics providers, business owners can secure their cash, improve their operational efficiencies, and better navigate the complexities of cannabis markets.
Salal’s cannabis banking experts know the ins and outs of the cannabis industry and can help your business function at the highest level. Reach out today to see how we can help you streamline your operations and find success.
