Leave Debt Collections to the Professionals
By Danny Batler
As a cannabis-related business owner, you are almost guaranteed to run into an accounts receivable issue. While problems like these are tough, they are a part of running a business in this cannabis industry. Fortunately, you can take several different approaches to collect past due money. Some businesses choose to have their sales department collect, while others immediately send a past due invoice to their legal team. Although these methods do work on occasion, it is far more effective to have a debt collection agency collect on your behalf. Using a collection agency allows for healthier client relations, increases the chance of recovery, and allows business owners, CEOs and sales departments to focus on finding new money instead of chasing old money.
The cannabis industry is especially affected by overdue payments. As many cannabis businesses extend credit, there is a high likelihood that past due invoices will become a problem. Opting to use industry specific debt collection agencies such as CannaBIZ Collects is the right choice since its expertise is very niched. It also allows you to work with an agency that has valuable industry specific data, specialized collectors and unique information on debtors that help when collecting past-due accounts.
When you are owed money, it is smart that you do not pursue payment personally against a debtor for too long. Doing so can result in the development of personal grudges, which ultimately impacts your business. Leaving it to professionals allows for a third-party collector to become the “bad guy” allowing you to spend your time doing business with more productive clients.
Choosing to pursue collections internally can also result in employees losing valuable time on more important projects. Unless you have a department within the company specifically tailored to debt collection, it is better to turn to experienced debt collection professionals. Partnering with a debt collection agency exponentially increases the chances that you will receive payment from a debtor punctually.
Receiving payment in a timely manner is essential to running a successful business. Without payment, accounts receivable quickly can become destructive to a company's cash flow. If companies do not receive payment, they are unable to pay for necessities required to operate their business. In addition, collecting in a timely manner is essential both due to the time value of money and inflation. With inflation rates rising, the saying “Time is Money,” has never been more important. This means that the longer a payment is outstanding, the less money you will receive when you settle. Fortunately, when you collect early, the payment is fuller.
Utilizing a cannabis debt collection agency increases the overall chance of receiving a payment, as the debtor will recognize that they are up against an experienced collector. Typically, debtors will settle as quickly as possible to avoid further problems. At the end of the day, utilizing a debt collection agency means you are using trusted professionals to settle on your behalf. CannaBIZ Collect is the leading cannabis debt collection agency in the marijuana industry with 600+ clients, 3,500 claims, over ten million dollars collected to date and a 85% success rate.
Our expansive database and impressive experience allow us to provide top notch service, allowing businesses to focus on what is important while we do their dirty work. For more information regarding debt collection within the cannabis industry, or to file a claim, head to www.cannabizcollects.com