Hemp Clothing Company Faces Financial Ordeal After Bank Closes Its Account Over Cannabis Confusion
Rawganique is an organic, chemical-free, hemp clothing company; who also offers handcrafted, organic household products as well. The company sells things like bed sheets, carpets, curtains, ropes, a variety of clothing, and more. They recently moved their business home to Blaine, Washington, from Denman Island, BC, with plans to open up their retail shop (and a cafe) about a 5 minute drive from the Canadian/US border.
Their products are created using organic hemp, cotton, and flax, as well as being handcrafted and naturally dyed.
Though they've moved their main operation for customer service and shipping to the Blaine area, their products are created at a variety of locations around both the US and Canada. Their main manufacturer is located in Romania and they've been working with them since their inception back in 1997.
After recently making the move to Blaine, now they've got a new problem to deal with after being recently let go from their bank, the Umpqua Bank, who they have been with since 2015.
They closed Rawganique's account over the confusion for their marijuana-related products. The bank says that those sorts of products are an excluded line of business and they are ending their relationship with them at the end of the month.
Now the company is left trying to establish another financial account in order to carry on with their business operations.
The business has responded in affirming that they themselves take no part in growing the hemp or manufacturing the hemp products. They only take part in the selling and designing process of the items.
There might still be a chance for them to sort out the ordeal, but what a headache this has caused them. They have said that they already started looking for a new bank as they won't be able to process any of their sales or pay employees etc, until they have an operational bank account.
At the moment, hemp is regarded as a schedule 1 drug, though many hemp products are legally sold around the US. The co-founder of Rawganique, Qeanu Wallner, has said that the bank has exercised a bit of ignorance in this matter, in not knowing the difference between cannabis and hemp. They've already started looking at other banks and allegedly have switched to Washington Federal just recently.
A variety of cannabis entrepreneurs in the US have had issues with obtaining financing and that leaves a big opportunity for cryptocurrency to provide a solution for them.
A lot of those within the cannabis industry who don't have a traditional bank account, are still operating mostly in cash and that makes them a target for criminals, and might not be as efficient as could be.
The blockchain provides a unique opportunity for those businesses to establish an online ledger for their transactions and to receive digital payments in exchange for goods sold etc. It can provide an option for those who are left out of the banking industry because they can't obtain a traditional account.
One cannabis retailer, located in Colorado, has also allegedly already started offering customers the option to pay in bitcoin. It might not be very long before a growing number of cannabis entrepreneurs look to the blockchain and cryptocurrency for help; where banks have failed them.
Pics:
news.theregistrysf.com
Pixabay
Sources:
http://www.thenorthernlight.com/2017/10/04/chemical-free-clothing-company-moves-to-blaine/
http://www.thenorthernlight.com/2017/10/19/umpqua-bank-to-close-local-companys-account-for-confusion-over-hemp/
http://nwnewsnetwork.org/post/hemp-fashion-firm-goes-through-baffling-ordeal-after-banks-decline-its-business
https://merryjane.com/news/blockchain-startups-cannabis-banking
https://www.ibm.com/blogs/think-leaders/new-thinking/blockchain-based-payment-changing-cannabis-industry/
confusion, or corruption? We all know they clothing industry relies on keeping the hemp hidden, same for ropes etc. I think you will appreciate my Introduction
i am abdullatifphadia nice is tree is very good is wow all wes tree is nice tree
very good postings, all the housewares are very much here, so people who want to shop here do not have to go elsewhere because everything is here, thanks for sharing info like this.
Why do they always have to do hemp dirty like that, backstabbers!
This post has been ranked within the top 80 most undervalued posts in the first half of Oct 27. We estimate that this post is undervalued by $10.36 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Oct 27 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
If you are the author and would prefer not to receive these comments, simply reply "Stop" to this comment.
Land of the free? Ha.
Going cashless? rotflol.
If bitcoin becomes a step easier to use, there will be many companies that will not deal in US$.
Often institutions distance themselves from things just because they don't want to potentially offend any of their customers. If most of their customers are in favour of something they will accept it.
🌟 You've been Upvoted & ReSteemed by our Cannabis Curation Team!🌟
Do you want more rewards on original cannabis content?
For more on the project that is ever growing click HERE.
For this week's Cannabis Curation Newsletter click HERE
It's new every Saturday night. Did you make the cut?
cannabis no 1 in this world from aceh indonesia
This post has received a 10.60 % upvote from @buildawhale thanks to: @doitvoluntarily. Send at least 0.50 SBD to @buildawhale with a post link in the memo field for a portion of the next vote.
To support our daily curation initiative, please vote on my owner, @themarkymark, as a Steem Witness