Banking in the CBD industry

A Guide to Banking in the UK CBD Industry

It seems odd that one of the fastest-growing industries in the world struggles with financing. Yet, that is just the case for many entrepreneurs seeking to capitalize on the flourishing CBD industry.

Banking in the CBD oil industry is heavily regulated, and startups face a field of bureaucratic red tape. However, if you know how to navigate the regulations to land sufficient financing, you could fare well in the industry.

If you are interested in being referred to a payment gateway that does accept CBD product please email

Why Is It Tough to Get Financing in the CBD Oil Industry?

To understand why CBD oil products face so many restrictions, it helps to discuss the industry’s background and challenges. It’s easier to obtain financing when you can address potential roadblocks.


What Is CBD Oil?

Cannabidiol (CBD) is a chemical compound extracted from the Cannabis sativa plant. CBD has calming properties that can help people relax without a psychoactive component.

Products made with CBD oil can aid in pain management and help curb some anxiety symptoms. However, you’re not likely to find a CBD oil product in London that is licensed as a medicine.

It’s Tough to Market a Non-Medicinal Treatment

Did you figure out the first issue facing the CBD industry? It acts as a medicine but technically doesn’t qualify as one. Marketing CBD is a challenge when your product intends to treat conditions like pain and anxiety but can’t be called medicine.

At this point, companies marketing CBD oil products can’t make any claims about the medical effectiveness of their products. All marketing materials must avoid all references to health benefits. That’s tough when it’s the purpose of your product!


Six letters form two compounds that come from one plant. The Cannabis sativa plant creates Cannabidiol (CBD) and Tetrahydrocannabinol (THC), but the two compounds have very different effects on the human body. CBD is perfectly legal in most places, but THC fares differently.

Tetrahydrocannabinol, or THC, is the chemical responsible for the psychological effects of marijuana. It has the calming, relaxing properties of CBD, but with a psychoactive component. Consequently, THC is illegal in many parts of the world and heavily regulated.

Many countries, including the UK, restrict the amount of THC that can be present in a CBD product. Since the amount of THC permitted is minuscule, it can be difficult to abide by the standards. Some investors refuse to take the risk and refuse to work with any CBD oil businesses.


The Struggle of a Faulty Infrastructure

CBD oil banking is problematic because of the UK’s faulty system. Though it’s not as tricky to navigate as other countries, like the US, the UK system relies heavily on perceived risks versus rewards.

Given the above challenges facing the CBD industry, CBD startups look like massive risks for many banks. Even though many CBD products are legal in the UK, many High Street banks stick to their conservative ways and refuse to approve accounts for companies dealing in cannabidiol.

To further complicate the situation, few payment processors and point of sale systems agree to work with companies selling CBD products with reviews for all of the above reasons. Even modern banking companies struggle under the weight of restrictions and questionable legal issues under the UK’s financial system.


Financing Options for CBD Businesses

CBD oil banking options may be limited because of the restrictions around the product, but that doesn’t mean it’s impossible. If you believe in your product and understand how to navigate the industry, there’s no reason you can’t secure the funding you need.

  • Secure private investors to bypass the traditional banking system.
  • Start small and scale slowly to work within your means.
  • Save up before starting up. It may take a while but funding your business without a bank helps your long-term goals.

How to Accept Payments from Customers and Get Paid

Even if you have plenty of capital for your company, you won’t do much business if your customers can’t purchase your product. Thankfully, some payment gateways willingly work with companies selling hemp products.

If you are interested in being referred to a payment gateway that does accept CBD product please email


The Future of CBD Oil Banking Looks Bright

Though it’s difficult to navigate now, the trends for CBD oil banking should change. As government regulations shift to allow more sales of CBD products, the banking industry is sure to follow suit. Like most industries, it pays to get in at the front end of a new product, though you may have to be patient for financing to catch up.

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