Top Challenges Facing CBD Businesses

The CBD industry faces a lot of challenges that most industries do not. Many of the challenges related to regulations and dealing with federal agencies such as the FDA. For instance, FDA has specific guidelines and rules regarding foods, drinks, and supplements. Before you start a CBD business, the following are some of the challenges you are likely to encounter.


The truth is that access to banking services can prove to be difficult because of the fluctuating regulatory landscape. A lot of banks are hesitant to do business with cannabis and CBD companies, fearing the considerable risk or even burdensome oversight. That explains why CBD businesses have to switch to banks to have their merchant accounts closed, which can disrupt operations.

Payment Processing

The payment processors present other challenges and high fees to the CBD businesses. For instance, Visa cut off all CBD businesses. If you want to learn a CBD enterprise, you will be forced to accept only Discover and MasterCard for payments.


Getting affordable insurance for your cannabis business is a serious challenge. That is because prices remain elevated despite the legalization of the industrial hemp. As the industry takes time to adjust to the latest developments, you will continue to pay high insurance fees.

Access to Capital

Financial institutions, lenders, and banks are reluctant to fund CBD companies as they view the industry too risky without clear regulations. That explains why this industry has relied upon bootstrapping, alternative vendors, and outside investors to find the capital it needs.

cbd productThe above challenges are likely to be cleared when there is a clear regulatory framework. However, in the meantime, CBD businesses ought to remain well-informed and adaptable. You are likely to encounter new changes in the industry on nearly a daily basis. Therefore, having backup plans can save you a lot of money and time should the worst happen.

It is also vital to note that your CBD business will face common challenges other businesses face. However, the growth in this industry is unparalleled. It is one of the most growing businesses in the nation. If you are planning to start this type of business, then you are not alone. A lot of people are trying to break in, so do not follow the herd.

Remember that you want to be a leader. You should combine creativity and due diligence to set your business up. This is the best to get started and build a business that will last.

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