Beyond Banks: Alternative Solutions for Gun Dealers

The firearms industry has a slew of challenges that gun shop owners may experience when trying to operate within compliance. Traditionally, banks are hesitant to work with gun shop owners, as these businesses are considered high-risk, making banks weary about partnering with them. For federal firearms license holders, this can result in absorbantly high fees, account closures with little to no notice, and a lack of support when it comes to compliance and expansion.

However, there is light at the end of the tunnel! Gun dealers can find financial partners who specilize in their business needs, to help keep within compliance and provide a great experience for customers who shop with them. Providers such as BKW Servicing offer fair pricing, the chance for businesses to expand across multiple states, and tools needed to provide a customized experience.

Let’s take a look at alternative solutions for gun dealers, and why traditional banks fail gun dealers.

Why The Traditional Industry Does Not Work

The traditional banking system is not made to support gun dealers. Here are some of the challenges you may experience when trying to partner with them:

1. Stigma: The stigma surrounding the firearms industry can cause banks to avoid partnering with gun dealers. This is them due to be labled as high-risk as a result of social and political contriversies surrounging gun ownership, sales, and shops. To avoid any controversy, banks avoid working with gun dealers and FFL holders alltogether.
2. Fees: There are strict federal and local taste regulations that nanks must abide by in order to support the transactions of gun dealers. For many, the added complications that come with ensuring compliance are not worth the partnership.
3. Account Closures: Gun dealers may experience sudden account closures, often with little to no warning. This is due to banks changing their laws and policies. This can be a big issue for businesses who rely on sales for their bottom line.

Alternative Financial Solutions

The lack of banking options available to gun dealers has sparked innovation for smaller banks to make their services more applicable to firearms businesses. Solutions that are tailored to unique needs of FFL holders are hard to come by, giving these banks a competitive advantage when working with these organizations. Exploring alternatives are a very smart move for gun dealers, for reasons such as reduced fees, a better understanding of the industry, long-term stability, and scalability and expansion. With industry-specific services, there is less sick of account closures of service disruptions.

Promising Financial Solutions For FFL Holders

Payment processors that include firearms businesses can be a game-changer. When seeking a new provider, look for promising solutions such as low transaction fees, secure credit card processing, and the support of online and in-store transactions. Working with an industry-specific financial partner can help you operate within compliance and gain customized support.

Steps to Transition to Alternative Solutions

If you are working on transitioning your banking providers, there are a few key features you will need to examine before beginning the process. Let’s explore them below!

1. Access Your Needs
   Get to know your specific business needs so you ask the correct questions when weighing your payment options. Are the fees transparent? Does the provider know what to expect when it comes to compliance? Knowing your non-negotibles is critical before starting this process.
2. Do Your Research
   Look for providers that specialize in industry-specific offerings, bonus points if they have familiarity in the firearms industry! Consider their compliance support, customer reviews, and specializations when doing your research.
3. Do a Cost Analysis
   Compare costs and request quotes from multiple providers before making your decision. Ask about transaction rates, maintenance costs, cancellation fees, and if there are any hidden charges.
4. Transition Gradually
   Make the transition as gradual as you can to minimize disruptions to your financial planning. Start with a single business account before transferring your entire organization.

How BKW Supports Gun Dealers

At BKW Servicing, we understand the challenges that come with operating in the firearms industry. Our solutions are designed specifically for FFL shop owners, so that we can offer stability, transparency, and industry expertise you won’t find with a traditional payment system.

You can also take advantage of multi-state FFL banking, which helps support businesses operating across state lines. We provide seamless banking options to ensure compliance no matter where you re doing business. Our competitive rates and transparent pricing also help you know exactly how much you are spending per month and how this will impact your bottom line.
Starting Your Partnership

When working with BKW Servicing, you can expect personalized support every step of the way. Our team is here tohelp answer questions, provide guidance, and help you scale your business with confidence. For gun dealers, navigating teh fincnail landscape can be challenging. Explore alternative banks and take advantage of lower fees, better compliance support, and long-term stability.

BKW Servicing is proud to be a trusted partner for FFL holders, no matter if youre a single shop or expanding across multiple state lines. Ensure your business has what is needs to thrive and contact us today for next steps on starting our partnership!