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