How CBD and Vape Businesses Can Overcome Financial Hurdles

December 3, 2024

There’s no doubt that both CBD and vaping are rapidly growing industries in the UK and are full of potential for success in future. Even with all the increase in popularity and sales, right now, operating a business in these two sectors is a bit of a roller coaster ride. From strict regulations to struggling with limited financial services for CBD and vape companies, there are numerous unavoidable challenges on this route. Not to forget the added challenge for these industries of being labelled as high-risk in the UK, which brings stringent policies, increased scrutiny and various financial regulations from banks and financial service providers.
This might feel like a steep road, but with the right financial solutions, you can easily pass through these financial hurdles to set up your business for success. This blog explores financial services for CBD and vape companies that can help them overcome prevalent financial challenges.

Financial Services for CBD and Vape Companies in the UK

1. Standard Bank Accounts

The first option any business can think of for their financial operations is a standard bank account. However, even this basic necessity is not that easy to secure when your business comes under the high-risk category. Due to the enhanced financial, fraud, and reputational risks associated with these sectors, traditional banks are usually not open to offering services to sectors like the CBD and vape industries. Try to look for banks which offer banking accounts for high-risk companies to manage day-to-day operations and provide access to additional services like loans and credit cards. On the downside, the standard accounts are not designed to cater to the unique needs of high-risk companies. Usually, the standard business accounts lack the ability to meet regulatory requirements, have higher risk tolerance, handle high-transaction volumes, etc.

2. Non-Bank Financial Services

When traditional banks fall short in meeting the needs of high-risk businesses, non-bank financial services come to the rescue for CBD and vape companies. These services include high-risk business accounts to carry out payments and manage payrolls, loan services, FX transfer services, and other financial tools. Contrary to traditional banking services, these non-bank financial service providers offer more specialised solutions and flexible terms. However, the product offerings usually come at higher fees and transaction charges.

3. Fintech Solutions

One of the most helpful and reliable options for CBD and vape companies is fintech solutions. These solutions are digital platforms that offer payment gateways, cash flow management systems, cross-border transactions, and invoicing services. Fintech solutions, as compared to the first two options, are more easy to get, cost-efficient, and reliable. Most fintech companies offer more transparency with real-time tracking of your payments. Although all digital tools are not the same, therefore it is highly essential to find a reliable platform that meets your business needs.

4. FX Service Provider

FX transfer services are another common need of businesses like CBD and Vape companies to manage their international transactions efficiently. FX transfer services generally have high transfer fees, conversion costs and daunting transaction processes, and unfortunately, these complications are doubled when it comes to high-risk sectors like vape and CBD. The simple solution is to look for reliable financial services for CBD and vape companies which also support FX transfers at preferential conversion rates.

Why Choose Wirewand for Your High-Risk Business

At Wirewand, we understand the unique challenges CBD and vape companies face in getting financial solutions. Therefore, unlike traditional services, we specialise in providing financial services for CBD and vape companies with tailored solutions which meet their need.

With Wirewand, you get:

Specialised payment solutions
Reliable FX transfer services
Favourable currency exchange rates
Flexible terms
Advanced tools
Compliance support