Get Your Gun Shop Bank Account Approved Fast

Are you struggling to secure a bank account as a federal firearms license holder? If so, you are not alone! This is a common struggle that unfortunately many gun shops face. Gun shops play an essential role in the economy and in upholding our Second Amendment rights, yet traditional banks see these businesses as high-risk and refuse to work with them. If banks do decide to engage in business with federal firearms license holders, this oftentimes comes with high fees, sudden changes in policy, and a lack of support when it comes to compliance.

If this sounds all too familiar, do not be discouraged! With the right strategies in place and a supportive financial partner, you can secure an FFL account approval quickly and avoid common pitfalls such as hidden fees and account closures. Let’s dive into how you can navigate the process and avoid common mistakes business owners space when working toward approval.

Why Is Opening a Bank Account So Hard?

You might be asking yourself, why exactly is it so hard to open a bank account as a gun shop owner? This is because the Firearms industry operates under strict federal, state, and local guidelines. Financial institutions are weary about partnering with gun shops due to the perceived risk of working alongside them. These risks and compliance nuances can include:

1. Being “High-Risk”
   Banks often classify gun shops as being high-risk businesses for a variety of reasons. These reasons can include regulatory scrutiny from the Bureau of alcohol, tobacco, firearms, and explosives. There is a high likelihood of large cash transactions in this industry, as the price of firearms is typically high. Businesses may also not want to get involved in political and cultural beliefs surrounding gun ownership.
2. Reporting Requirements
   Gun shops are obligated to abide by federal reporting requirements in order to stay compliant. Banks will choose to opt out of these complexities as to not pose risk to their reputation and have to perform additional audits. As a result, they will decline FFL accounts as partners.
3. Complexity of The Industry
   Another reason why opening a bank account can be so hard as a gun shop owner is because Banks typically have a very limited understanding of the firearms industry. Most banks don’t specialize in serving FFL holders as they do not understand the compliance requirements and unique needs needed in order to support these businesses successfully.

How To Get Your Gun Shop Approved Fast

If you are in need of establishing a speedy partnership with a bank, here are a couple of tips to help you secure an account for your gun shop more efficiently.

Get Your Documents In Order

Getting your documentation in Order ahead of time can speed up the approval process and help you gain approval faster. Some of these documents include a copy of your federal firearms license, business registration paperwork, proof of compliance, and a copy of your business plan.

Vet The Financial Institution

Not all financial institutions are created equal, especially when it comes to supporting gun shops. Be sure to do your research and vet out providers that have experience working with federal firearms license holders, offer services specifically catered towards high-risk Industries with complex compliance requirements, and are willing to support you as a gun shop owner.

Be Open!

Keep your communication open and candid when applying for your approval. Be upfront and honest about your business and operations while coming prepared with any and all information the bank might need.

Mistakes You Should Avoid

As you are trying to secure your federal firearms license account approval, it is important to avoid these common mistakes during the process.

Incorrect Paperwork

Subnitting incorrect paperwork can significantly slow down the approval process. Be sure to double-check all of your forms before your appointment and make sure your application is up to date.

Applying to Institutions Unwilling to Work With You

Do your research beforehand and make sure you are not wasting your time by applying to institutions that are unable to work with firearms businesses. It is your best bet to apply to financial institutions that specialize in servicing FFL holders.

Disregarding Multi-State Banking Needs

If your gun shop operates in multiple states, be sure that you are applying to an institution that is able to support compliance across multiple jurisdictions. These are some preliminary questions you can ask before submitting your application.

How BKW Simplifies The Process

BKW servicing understands the challenges that federal firearms license holders typically face when applying for bank accounts. Our specialized services are customized specifically for gun shops so that you can expect fast, easy, and industry-specific financial solutions.

Our team has specialized expertise in the firearms industry when it comes to compliance. When working with us, you can expect a full understanding of unique regulatory requirements so that you can bank with ease. Our services are also designed to help accommodate your multi-state solutions needs so that you can remain compliant when servicing multiple jurisdictions.

From compliance questions to ongoing account management, we are here to support every step of your business journey. Ready to get started? Contact us today!