Although cannabis products can be sold legally in some states, cannabis and CBD collections have remained a nightmare for marijuana vendors. Most vendors do not have a solid plan for recovering delinquent debts from clients they deliver their marijuana products to. If you are a cannabis vendor and you have a problem dealing with uncollected debts, hiring a certified debt collection agency to assist you with collecting your past-due account receivables is critical. Here is a quick overview of when it makes sense to partner with a cannabis and CBD collections agency.
- When there is Need To Track Account Receivables
Also known as AR, account receivables are the amounts of money owed by clients for goods that a firm delivered on credit. Ideally, some cannabis vendors deliver their cannabis products on debt and have to track their account receivables from time to time to ensure there is sufficient cash flow.
However, tracking account receivables can be challenging since previous receivables become harder to collect as they become older. Again, the laws regulating how accounts receivables should be handled vary from one state to the other and they can be complex to navigate. Hiring an agency to track account variables on your behalf can make the entire process easy.
- Keeping track of the Debtors
When a vendor has delivered to so many clients on credit, they may experience problems identifying or tracking some of the clients they delivered to. A debt collections agency is required to identify these clients and to further pursue the missing revenues. A good Cannabis and CBD collections agency will review all the account receivables alongside any other information concerning the vendor’s terms of payment. The agency will then advise on the best approach to use for pursuing missing revenues.
- To Show Debtors That It Would not Be Business As Usual
Using a debt collections agency is one of the easiest and best ways of sending a clear message to debtors that the vendor wants them to clear the outstanding debts. Some cannabis debtors will certainly give all manner of excuses as to why they have not paid their debts on time. Others will lie and promise to pay on a later day yet they would not keep their word. Hiring a collections agency to deal with such debtors can help show that it is not business as usual. A good agency will just make a call to relevant debtors thus encouraging them to take action and clear their debts.
- When Legal Action Is Needed
A professional cannabis and CBD collections agency can help take legal action against debtors who are not cooperating with the agency, or debtors who have intentionally defaulted their debts. Most debt collection agencies have attorneys who can take legal action on behalf of their clients.
Managing account receivables can be a headache for any cannabis and CBDretailer. Partnering with a good collections agency and allowing them to deal with your debts ultimately makes lots of sense, especially if you have massive past-due account receivables.