- Cannabis companies are facing financing problems, because the big banks will not take them on as customers
- Dama Financial is focused on making transparent banking services readily available to the cannabis industry
- Dama Financial offers turnkey services to clients looking for safe, sustainable and modern financial/payment options
Although more than 30 states have legalized cannabis use in some form, the majority of businesses in the field are having a hard time gaining access to banking services, leading to the emergence of specialized ancillary services to fill this gap. Dama Financial, a San Francisco-based private company, is one of these service providers, aiming to provide secure online and mobile-friendly banking services to cannabis-related businesses through its bank partners. Dama administers the provision of such solutions as an agent of its partnering financial institutions.
Founded by financial and payment industry veterans, the company is driven by a passion for innovation and solving complex business problems, ensuring value for its stakeholders.
Operating a cash-based business can be challenging due to various risks. These challenges are even more pronounced in the cannabis field due to the limited availability of financial services. Dama believes that reputable cannabis-related businesses deserve the same range of financial services as more traditional companies.
Dama Financial can help cannabis-related businesses create a safe environment for their employees and customers by reducing cash on hand, enabling them to pay their vendors and employees either electronically or by check, receive fund transfers effortlessly and ultimately run the business more efficiently and scalable.
Dama Financial engages in comprehensive due diligence process following the Know-Your-Customer (KYC) guidelines associated with the Bank Secrecy Act (BSA). All of the information provided in a funding application is verified, and an onsite visit to the company’s primary address is conducted to confirm the licensed business.
Once the application is processed and approved, the cannabis-related business will receive financing through one of Dama’s bank partners. Dama Financial will manage the delivery of the service on behalf of the bank partner.
In essence, Dama Financial provides turnkey services that are specifically created for the needs of the cannabis industry. Dama’s customers have access to a secure armored cash pickup and deposit service, a secure online account center that’s available 24/7 for the electronic transfer of funds to and from approved partners, real-time transaction alerts by phone or email and access to the services of a dedicated relationship manager.
Cannabis businesses applying for a Dama account need to have a current state-issued cannabis license. Cannabis licenses are not required for ancillary businesses.
Regardless of the fact that cannabis business legalization is advancing, companies in the field are still facing financing issues (http://ibn.fm/ctLlR). Cannabis remains illegal under federal law and banks are often reluctant to work with industry representatives. Current research suggests that only one in 30 banks or credit unions across the U.S. will accept a cannabis company as a customer. Even in such instances, cannabis-related businesses are charged hefty fees for the financial services being provided.
This is the primary reason why the services provided by Dama Financial are so important and could help promising cannabis enterprises succeed by providing them with the financial and banking tools needed to fund their growth and development.
For more information, visit the company’s website at www.DamaFinancial.com
NOTE TO INVESTORS: The latest news and updates relating to Dama Financial are available in the company’s newsroom at http://ibn.fm/Dama
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