While trade credit is not currently the norm in the cannabis market today, we believe it will be in the future and with credit there are collections.  Almost every company we have spoken to, whether they are grower, manufacturer or service provider are extending some type of credit to a segment of their customers.  Most of this credit extended today in the cannabis market is what we call “friendship credit”, credit that is extended to a customer who you have known for a while and have developed a personal relationship with and where no real credit analysis was performed.  Friendship credit might be ok in today’s existing marketplace but in the near future, when the rules change, many of your customers on friendship credit are not going to pay you what you are owed on time and some are not going to pay you at all.  When this happens, what are you going to do?

The following is a common-sense approach to the problem of determining whether a customer who you have extended credit to, whether it allowing them to float checks to you or giving them 7,15 or 30-day credit terms, is about to become a collection problem where you may need outside help.  Customers of...more

INTRODUCTION

According to Forbes, “the legal cannabis market was worth an estimated $7.2 billion in 2016 and is projected to grow at a compound annual rate of 17%. Medical marijuana sales are projected to grow from $4.7 billion in 2016 to $13.3 billion in 2020. Adult recreational sales are estimated to jump from $2.6 billion in 2016 to $11.2 billion by 2020.” These estimates, we believe, assume that the banking system will begin treating cannabis businesses like almost every other business and make bank credit available. When this happens, as we are already seeing in the California market, cannabis related business will no longer be primarily operating on a cash basis. You will be extending trade credit on about 90% of your sales and once you reach a certain level of annual revenue, you will need to develop a Credit & Collection Department that will help you manage the second largest asset on your balance sheet - your accounts receivable. 

Your emerging business has the potential to grow significantly, but only if you can implement the operational infrastructure and financial controls that are necessary to support your growth. If you, operationally, can’t keep up with ...more

Cannabis Branding, 3 reason to choose us: Ecological, Original, Your Cannabis Seed Represent!!!!!

Text me at +17203642759 to make yours!

www.cerdaimports.club

ISO-certified companies all say the cost and effort to become certified is well worth it! 

As the cannabis industry becomes more competitive, a growing number of cannabis companies are looking for ways to differentiate their operations, whether that means offering value-added services or implementing the latest lean techniques. 

One best practice that many of today's leading shop's tout is ISO 9001 certification. The ISO standard is based on implementing seven quality management principles, including a strong customer focus, Evidence-based decision making, and continuous improvement. 

The basic goal of the ISO 9001 standard is to help companies provide customers with consistent, good quality products and services, which, in turn, often brings business benefits like improved financial performance. 

ISO standards are certain to help you increase profitability by

• Improving the quality of your goods and services
• Enhancing your credibility and build consumer confidence
• Cutting the business costs of poor service and reduce customer complaints 
• Processes will be aligned and understood by everyone in the business which increases productivity and

L’Eagle Services Presented with NCIA’s Excellence in Innovation Award for Cultivation

In an industry where the standard is often quantity over quality,

L’Eagle Services sets itself apart with sustainable cultivation practices

DENVER (Feb. 8, 2018) – The National Cannabis Industry Association (NCIA) has recognized, L’Eagle Services — a Denver based cannabis cultivator and retail dispensary specializing in clean cannabis — with the NCIA Excellence in Innovation Award for their leading edge in sustainable cultivation practices.

The NCIA Industry Awards recognize the best and brightest in the business, who are working to advance the cannabis industry. NCIA’s Excellence in Innovation Award is presented to those who are moving the industry forward by bringing an innovative idea to life in three categories: cultivation, infused products and extraction and business strategy and innovation.

Named The Cannabist People’s Choice Award Winner for Best Dispensary in 2018, L’Eagle Services prides itself in providing consumers with high quality, clean cannabis they can trust. L’Eagle implements sustainable practices from seed to sale bringing forward an innovative method for cannabis cultiv...more

Impact of Coinsurance on your Business Property and Cannabis Coverage

Every cannabis business goes through the process of trying to determine the proper amount of property insurance and understanding key policy terms.  One of those terms is named coinsurance.  Basically, it's a calculation used by insurance carriers to determine the amount of a loss paid after a claim for business personal property coverages.  Property means building, cannabis,  grow equipment, computers, display cases, tenant improvements, or other property owned by the cannabis company.  Commercial liability policies will not have coinsurance.

Coinsurance is always expressed as a percentage.  For example, a cannabis licensee may insure their grow equipment for $500,000 with an 80% coinsurance factor.  A retail marijuana store might insure the building for $350,000 and cannabis stock for $100,000.  Other coinsurance factors may include 90% or 100% as insurance policies will have one coinsurance factor.

For this reason, a online tool is available to the cannabis industry to help figure out the impact of coinsurance for determining their property values.   You ba...more

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  February 21, 2018 (#021)

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                                                                                                       Email inquiries: cdipress@insurance.ca.gov

SACRAMENTO, Calif. — Insurance Commissioner Dave Jones announced today he has approved the first surety bond program for the cannabis industry in the State of California. Continental Heritage Insurance Company is the first insurer in the state to be approved to offer surety bonds for the cannabis industry.

“Cannabis businesses should have insurance coverage available to them just like any other Califor...more

National Cannabis Industry Association Forms Insurance Sector Committee

Two cannabis Surplus Lines Brokers Cannasure and Next Wave Insurance have formed a committee to change the cannabis insurance industry courtesy of the National Cannabis Industry Association ("NCIA").  For NCIA members and non-members, the NCIA offers several committees involving industry experts on a variety of topics.  As such, a committee to tackle and parse through the myriad of issues associated with insuring cannabis made up of lawyers and insurance professionals. 

The chairperson is Cannasure's very own Mr. Patrick McManamon with Mr. Ian Stewart, Esq. as its vice chairperson from the law firm of Wilson Elser.  The committee has two members from Next Wave Insurance, Mr. Michael Aberle and Mr. Jeff Ward to be certain they are properly represented.  

The first committee of its type appears mandated to discuss risk management, insurance coverage issues, and deciding where the next lawsuit will arise involving insurance.  Cannasure and Next Wave Insurance are both licensed surplus lines brokers that operate throughout the United States appointing insurance brokers...more