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Understanding Marijuana Debt Collections

These days, more and more businesspeople are getting into the medical marijuana business, and a number of entrepreneurs have been very successful. This means that it is easier than ever for customers to get the cannabis they need to manage pain and improve certain serious health conditions. If you think you may want to become a cannabis retailer, there are a few important things you should know about marijuana debt collections.

One of the first things you should do is connect with a cannabis collections agency. It’s best to deal with attorneys who have experience in the cannabis industry, since the methods for collection may be a little untraditional. After all, you probably won’t get the funding for your business in the most conventional way, since banks are somewhat hesitant to provide loans for this type of business, so ensuring that customers pay on time could be a matter of using creative communications methods and proper legal documentation.

It’s best to keep in mind that there are a number of reasons why your customers may not be paying their debts. If you sell cannabis to distributors, these distributors may have cash flow issues, or could be going out of business. There are also individuals who may not have the funds to immediately pay their debts, but are willing to communicate with you, so you can set up a payment plan. Unfortunately, there are also customers who are dodging all communication from you and have no intention to pay their debts. In these cases, your team of attorneys will have to assist you in taking legal action.

When you’re dealing with customers who refuse to pay, or those whose accounts are seriously delinquent, you’ll need to speak with your cannabis collections team about whether or not a write off is best. If you find that the cost and resources used to recover the debt is more than the value of the actual debt, a write off will help you to get back a fraction of your losses so that you can move on with your business and bring in more customers.

The right cannabis collections team will also let you know which technological methods and staff members are necessary to keep the accounts payable and accounts receivables aspects of your business intact. If your accounts are organized and you’re communicating with customers on a regular basis, you’ll have the evidence that you need in case you have to take the case to court. Your collections team can also guide you through the legal process, so that you can get the money you are owed in an efficient and timely fashion.

Always work with a cannabis attorney team that will deal with your customers with integrity, friendliness and professionalism. This is an essential aspect of customer service, and can affect the reputation of your business. Even though debt collection can be a difficult and awkward situation, if you’re working with experienced professionals, you can settle the matter in a way that will help your business to maintain its positive reputation. 
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