Cannabis, like any drug, has a shady background. For many years it has only been possible to smoke it in specific locations round the world. Thankfully this is now changing as people become more aware of the potential benefits of this plant.
The result is a rapidly increasing business sector. This sector is providing a significant amount of taxes for the government and is now looking to access the traditional finance systems.
The problem for many cannabis suppliers is that banks are reluctant to offer traditional accounts and banking facilities. This is due to their wariness to upset federal enforcement agencies. These agencies still view cannabis as an illegal substance, despite the fact that at least eight US states have made it legal to grow, buy, sell and even smoke cannabis.
Fortunately the governments of these states are taking measures to help bring these finance services to these new industries. This will help them to comply with regulations and increase their ability to attract new customers.
Why Cannabis Debt Collections Agencies?
As cannabis becomes more widely accepted the range of customers will increase and the need to offer credit, as any business does, will have to be met.
At present many cannabis suppliers work on a trust basis. Credit is only offered to customers who have proved themselves to be reliable and provide repeat business. This is the safest way to do business although not always effective.
This works fairly well with individual customers who need their supplier. However, once the marketplace has grown, suppliers will be selling to retailers who expect trade facilities. In addition, the increased number of venues supplier cannabis will make credit on trust a dubious if not unsustainable trend. Put simply, someone who cannot afford to pay you will be able to access their cannabis through a different source, effectively providing them with no reason to pay you.
Using the Cannabis Debt Collections Agency
The answer will be the natural progression and expansion of debt collections agencies. As well as traditional debts they will take on your customers and chase them on your behalf.
The successful cannabis debt collections agency will have a unique understanding of the industry and how to handle your customers in the best possible manner. In many cases they are attempting to extract funds without losing you a customer; this is a tricky scenario to replicate perfectly but one which can be done; if you know the industry.
One advantage that the cannabis industry does have is that a customer will need a regular supply to ensure their needs are met. If their ordering starts to become erratic then you will know there is a potential issue. This may simply be them switching to an alternate supplier; or it might be a cash flow issue.
At this point you can contact the cannabis debt collections agency to investigate and verify their situation, discreetly. This will allow you to resolve the issue before it becomes one!
There are many ways in which the services of these debt collection agencies can be linked with your business to ensure a cash flow problem never arises; you simply need to find the right cannabis debt collections agency for your needs.