Community Savings Credit Union breaks new ground for cannabis industry banking with pre-approved credit cards

VANCOUVER, BC / Unceded Territories of the Musqueam, Squamish and Tsleil-Waututh Nations, Feb. 26, 2024 (GLOBE NEWSWIRE) — Community Savings, a BC-based credit union, has announced the launch of pre-approved business credit cards for its cannabis membership. This industry-first offer finally gives cannabis businesses in BC guaranteed access to credit cards, a long overdue change in the financial services available for the industry.

Typically, credit cards are a standard payment solution available to any small business, but obtaining a business credit card for cannabis businesses has – until now – been a highly discriminatory process. Many cannabis businesses are rejected by credit card providers solely because of their legal business in cannabis. Community Savings has successfully campaigned for policy change to ensure cannabis businesses have credit card access. This is a significant milestone, changing the way access to basic financial services is provided to cannabis businesses in BC.

Community Savings offers three business credit cards with a range of benefits. The No Fee Cash Back Visa allows you to earn cash back for the purchases your business regularly makes. The Visa Low Rate Business Card features a low annual fee and low interest rate, and the Visa Infinite Business Card offers valuable rewards and first class privileges with a competitive annual fee and a limited time 5,000 welcome bonus points offer. Other card benefits may include zero liability fraud protection, purchase protection and extended warranty, trip cancellation and interruption insurance, as well as lost or delayed baggage protection.

Commenting on the launch, Mike Schilling, President and CEO of Community Savings Credit Union, said “Cannabis businesses have been forced to operate without a fully functioning banking system for too long. The industry was legalized five years ago, but big banks have ignored this sector’s needs and credit unions like Community Savings have stepped in.

Credit cards are an essential financial product for businesses. Community Savings is proud to now pre-approve every one of our cannabis members to ensure access to this basic payment product. Every day, we work with our members to help grow the cannabis industry, starting with access to the right financial services.”

Five years after legalization, access to basic financial services is just one barrier facing Canada’s legal cannabis industry. Notably, cannabis growers and producers pay federal taxes of a staggering +30% of top-line revenue, in addition to overly burdensome regulatory compliance costs experienced by all cannabis businesses. Despite the challenges, the cannabis industry has grown about 10% year-on-year since legalization and supports the jobs of nearly 100,000 Canadians. With the right legislative framework, the industry has an opportunity to grow to increase its economic competitiveness and meet global demand.

As a pro-cannabis business financial institution, Community Savings is the largest provider of banking services to BC’s cannabis sector of growers, processors, retailers and ancillary businesses.

This month, the credit union, together with We Can Capital Inc. launched another industry-first innovative invoice factoring program crafted for British Columbia’s licensed cannabis producers (LPs). This initiative gives LPs access to affordable and readily available working capital to support growth. More information on Community Savings’ affordable invoice factoring for cannabis licensed producers in BC can be found here.

If you are a cannabis business or a cannabis-affiliated business looking to have access to a credit card, visit www.comsavings.com/rollwithus, e-mail [email protected] or call 604-637-5123.

About Community Savings:

Community Savings Credit Union is driven by its purpose to unite working people to build a just world. As BC’s largest fully unionized credit union, Community Savings provides best-in-class personal and business banking. It is the largest provider of banking services to the BC cannabis industry, providing day-to-day banking, lending, and account receivables financing to support the growing sector.

Community Savings operates six branches across the Lower Mainland and Victoria and services its cannabis members province-wide. It lives by its values, from being the first financial institution to become a Living Wage employer in 2010 to winning the 2022 BCBusiness Business of Good Workplace Wellness Award for its innovative staff wellness programs. For more about Community Savings, visit www.comsavings.com.

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