Is Hiring a Cannabis and CBD Collections Company
Have some unpaid invoices from some of your CBD clients? You are in good company. A study
done by Sage in 2017 showed that 10% of invoices are either paid late or never paid at all. In the
former case, most companies simply write off the invoice off because, well, it is paid a little too
late. Although this study is general, it is also a depiction of the state of affairs pertaining to debt
within the cannabis industry. Past-due accounts seem to be the order of the day for many CBD
This is the reason CBD collections are making a living off of chasing people down to submit
payments for their clients. As a CBD company owner, hiring a collection agency to handle your
unpaid invoices is in your radar. If you have suffered cash flow problems because of past-due
accounts, you know just the importance of a good collection agency. But just how expensive is
What Does A Collection Agency Do?
Like other collection agencies, cannabis collections handle past-due account receivables.
Essentially, they have attorneys and financial experts to handle commercial collections. A good
CBD collection company understands all the idiosyncrasies of the CBD, hemp, and cannabis
industries. They know the ins and outs of cultivation, processing, and distribution of CBD and the
importance of relationships in the industry and are equipped at handling collections professionally.
To be effective at their craft, most CBD collections offer skip tracing and investigation services.
When you hire them, they will conduct a background check on your clients to know the top dogs
and work out the best course of action. Some of them also offer a full financial service including
credit consulting and A/R management.
Different agencies offer different services. For instance, some are ideal for big CBD businesses
while some deal with start-ups and smaller merchants. Ideally, CBD collection agencies are paid