Cannabis Debt Collections: What You Need to Know

The growth of the cannabis industry has been pretty impressive over the past few years. If you live in states like Washington or Colorado, the legalization of medical marijuana sales for adults over the age of 21 has significantly changed the economy of these areas. Now, other states have legalized cannabis retail as well, and the changes this has made in the local and national economy has been compared to alcohol prohibition, which was a serious issue in the last century. These are just some of the reasons that cannabis debt collections are necessary.

Since more and more people are able to buy marijuana without having to face harsh consequences, the cannabis retail market has become a legitimate source of income for several businesspeople. Unfortunately, since a product or service is being offered by these businesspeople, it is necessary to have a professional collections protocol in place to ensure that debts are paid in a timely manner.

There could be a number of reasons why those who purchase products from cannabis retailers don’t pay their debts. They may have purchased the items on credit, only to find that the transaction didn’t finalize due to a lack of funds in the debtor’s account. Some individuals also order cannabis for the purpose of reselling it, and may neglect to pay their debt to the original retailer in an attempt to make more profits. There are also instances in which customers purchase cannabis on a regular basis, but due to financial difficulties or unexpected circumstances, they are not able to pay for a recent order and have an outstanding balance.

Those who sell and distribute cannabis have to protect their inventory to ensure that they can continue making profits and regulate cash flow. This is why it is necessary to hire lawyers who have extensive experience in cannabis sales and know how to recover debts in a professional and efficient manner. A collection agency that is nationally accredited to handle cannabis retail accounts is best, and increases the chances that debts will be paid, even if the debtor doesn’t respond immediately.

It is also important for cannabis retailers to collect debts without ruining their business relationships with fellow businesses and independent customers. This is why choosing a collections agency that implements creative methods to ensure that the debt is settled without offending the debtor. A cannabis collections agency that can provide expert legal counsel that is specific to each account is beneficial as well. For instance, if may be more productive for the business overall to accept a charge-off for an account if trying to collect the debt in a traditional manner isn’t producing results. Cutting down on legal fees and court costs is also ideal, since these things can be very expensive and take time away from actually conducting business.

Whether you’re just starting a cannabis retail business or have been selling legalized for a while and want to make sure you’re making the right financial and legal choices for your company, contact a cannabis collections agency to get all the details you need to contribute to your long-term success. 

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