Why use a Collection Agency versus an hourly attorney to collect money.
By Danny Batler
The Green Rush is in full effect and business is booming. But with this incredible influx of business, many companies are experiencing struggles because they’re owed money. This led many of them to hire expensive hourly attorneys who make no promises. Instead of paying upfront for a lawyer and hoping that your claim is paid out in full, companies should consider opting for a contingency cannabis collection agency. In this blog, we’ll give you all the reasons you should leave behind the antiquated method of hourly attorneys and instead use a cannabis collection agency.
Cannabis collections are a monumental issue for the industry, as many of the leading credit networks refuse to work with businesses because it’s still not federally legal. This leads to businesses extending cannabis credit terms to specific businesses without proper procedures in place such as invoicing and applications. Creditors are then faced with the headache of trying to collect from companies that are going out of business or refusing to pay their debts. Not only is this bad for the creditors, but it’s also hurtful to the industry as it stops the cash flow and creates distrust within the industry.
Why Hourly Lawyers Don’t Make Financial Sense As A 1st Choice
If your company is owed money, you may be considering hiring a lawyer, and while lawyers are effective, they are paid hourly, making them an extremely expensive option. Along with their sky-high rates, they also give companies no guarantees, meaning if they aren't successful in their collection efforts, they still need to be paid. Cannabis collection agencies vary, but the quality agencies will offer litigation help, while also offering a contingency fee. This means that your company only has to pay if the cannabis collection efforts are proven successful. Starting with a cannabis collection agency comes at no risk to the company because if they aren’t successful, you can still go to a lawyer. But as a first choice, hiring an hourly lawyer simply doesn’t make financial sense for companies who are looking to keep yearly profits high.
Why Choosing The Right Collection Agency Matters
They are many cannabis collection agencies that are prominent within the US and offer full-scale service within the account receivable/ collection business. And finding the right company can make all the difference in seeing fast collection and getting your business’ finances back on track. One of the leading collection agencies is called CannaBIZ Collects, or CBC. They have nearly two decades of experience in the collection industry giving them background knowledge on how to collect from a variety of debtors and navigate a plethora of issues. But while some credit collectors are new to the legal cannabis industry, CBC was founded along with former cannabis operators giving them extensive insight into how the industry functions. CBC handles cannabis-related account receivable issues all over the US as well as in Canada and they’ve resolved both adult-use and medical payment issues.
Hourly attorneys will always have a place in the collection industry, and sometimes hiring them is unavoidable. But companies who are looking to maintain financial solvency and collect their debts fast should always work with a success-contingent-based collection agency first. And there’s no better than CannaBIZ Collects.