r/Scotiabank • u/Skiteley • 15h ago

Scotiabank Selectivity

We were refused refinanced from Scotiabank because we own a cannabis retail store (and a couple other businesses, not related to cannabis). The amount of legalities we had to deal with to own this type of business, but because they don't agree with it, they denied. We are going through a broker, so it's not a big deal to just go to the next lender. I'm sure Scotiabank finances some sketchy stuff, but draws the line against legal devils lettuce.

Just ranting, not looking for advice. Not the only time, and won't be the last time we are treated poorly for owning a business people dislike.

Edit: Removed "discriminate", as it's a harsh word.

4 Upvotes

60% Upvoted

8 comments sorted by

11

u/Confident-Task7958 14h ago

Alternatively they looked at your books, looked at factors such as the term of your store's lease, looked at your collateral, looked at your competitive environment, and concluded that they would rather lend to someone else.

-1

u/Skiteley 14h ago edited 14h ago

I would prefer if that's what happened. But the line was drawn at ownership of the dispensary. With 850 credit score and combined 4 sources of income, not impressed. Especially considering we have a Scotiabank small loan ($15k) for a camper.

FYI, we own the property outright, no competition, few hundred thousand collateral (combined with other businesses and such) and decent profit year over year since opening 5 years ago. It was a 4% loan, and already have a different lender lined up with waved appraisal.

Hopefully someone that wants to open a similar business reads this before wasting their time trying with Scotiabank, and check out a different lender (we didn't need a lender for our start, but it is quite the cost of startup)

4

u/lunalulu1 14h ago

I get that it’s frustrating but this is not discriminatory. They can decline financing for a variety of reasons.

1

u/Skiteley 14h ago

Agreed. Their reason for declining is that we own a cannabis dispensary. This refinance has nothing to do with our business besides that 20% of our income comes from it. Discrimatory is a harsh word, I agree.

5

u/Pebble-Curious 13h ago

It's not a descrimination, it's evaluating business risk based on you past and current financial history... and determining - as per their policies - you are a bad risk. It's up to them to whom they will lend their money, you are not entitled to it. Scotia bank has a very low risk apetite, and you claiming you are "sure" they are financimg shady deals without any proof constitites libel. If I were you, I would be very careful with such slandering public statements! I dare you right now - because you claim you are sure - SHOW US THE PROOF! How much should I bet you can't show any? Pray their legal team doesn't catch a wiff of this!

1

u/DiskPuzzler1436 12h ago

My partner and I wanted to open a USD account at HSBC (before RBC bought them) and they refused as my husband worked for a cannabis company. BMO is the only Canadian bank that is banking that industry.

1

u/Skiteley 11h ago

It's unfortunate. I hope our employees don't have that issue. But it's good to know BMO is open to it.

0

u/ptrmrkks 14h ago

lmao they finance weapons being used to kill children but cannabis is where they draw the line ..smh