The Risks Of Not Using A Collection Agency

pexels-photo-669615.jpeg

The Risks Of Not Using A Collection Agency

This blog post isn’t meant to scare you. But it is meant to be a reality check.

Think of all the things that can threaten your business. There are so many, but pay close attention to the list below that should concern you as a business operator. 

  1. A change in the marketplace
    1. An oversupply of competing products. For example: In Oregon, prices of outdoor plummeted to $50/pound of flower after the last harvest season
  2. A change in the legal landscape
    1. New regulations have limited your efficiency. For example: A pesticide or procedure has been outlawed in your market
  3. A disgruntled employee becomes a saboteur
  4. Your accounts receivable grows to an unmanageable amount, detrimentally effecting cash flow 

 

Of all these threats, only one can be in your control. Your business is able to protect its risk against issues with its receivables. If you’ve read any of our previous blogs, you know why extending credit is beneficial to your business. It allows your business to increase its top line, by allowing your customers more time to pay for COGS, which in turn allows you to sell them more product per transaction. Extending credit creates a cycle of positive revenue for everyone involved. However, that only remains true when your business is able to have that A/R paid, and paid on time. 

Without proper procedures and policies, along with an unsecured method of collecting those debts, your business can be in real trouble. Nothing is worse than having to backtrack to collect money for products you have already sold! There in lies the risk of extending credit without having a premium collection agency to have your back.

By setting up an account with CannaBIZ Collects, you, your business, and your receivables manager, can have peace of mind knowing that your receivables will be recovered in a timely fashion. This protects your cash flow, and your sanity. 

Working with CBC means that there are never any upfront fees to collect those receivables that have troubled your internal departments. With our outstanding track record of roughly 80% success, along with the proper safeguards and credit extension procedures, your business won’t ever have to think twice about extending credit and dealing with collections. Focus on what you do best, and that’s growing your business. Let us handle the hard stuff, and get your money back from those debtors who have decided that your cash isn’t important. Because we know it is! 

Cody Ziering