While selling cannabis on credit is not usually the norm in today’s market, it is just a matter of time before it begins to happen. And once trade credit begins, collections is not far behind.
But first what is collections? This can be described as the recovery of debt from a customer for whom you extended credit for either by purchasing your product or using your service. Fact is almost all the company in the cannabis industry are now extending trade credit to some of their loyal customers. This kind of credit is otherwise known as friendship credit – credit that is extended to loyal customers and with whom you have built a personal relationship. However, most companies fail to do credit analysis.
No doubt, friendship credit is another great way to improve customer loyalty and increase patronage. But what happens when credit trade becomes the norm. Nothing kills a business faster than credit extension, particularly if the customer starts to default. That being said, there will times when customers with whom you extend credit refuse to pay at the stipulated time. For some, they may likely not pay at all. When faced with such situation what steps should you take? The best and most appropriate solution is to contract cannabis collection services. When extending credit is about becoming a problem cannabis collection services are just the right agency to consult.
Best Time To Contract Cannabis Collection Services
Here are some signs to know when credit extension is about to become a collection problem.
The Customer Is Over 30 Days Past Due
The customer has overtime been loyal and pays for their product/service on time. Due to their loyalty, you have given them access to credit. The first few transactions went smooth. The customer settles their debt even on or before the stated date. But suddenly they are 30 days past due, and this keeps going on and on.
Each time you reach out to them, they respond and promises to settle their debt in due time. Now you are starting to feel concerned. Depending on how old the debt gets, it is advisable to look for reliable cannabis collection service to help you. Not only will they help you recover your money, but also save your customer relationship.
Not Reordering or Worst Still Not Answering Your Calls
If your customer is past due and does not return your calls, then there is a big problem. You need to act fast otherwise you will lose both your money and customers. If they would not talk to you even after trying several means to reach them, and their debt is more than 30 days due, and they are not showing any willingness to settle their old balance, your best bet might be contracting cannabis collection services.
Cannabis collection agency makes sure that your debtors settle their old balance. That is what they do for a living. Also, they will help fix the broken bridge between you and your customer so they can start reordering.