In a rapidly rising industry, the marijuana business undoubtedly faces its unique set of challenges. The growing demand for medical marijuana cards has seen an increase in plant-touching marijuana companies struggle with a cycle of debt. In a recent insightful conversation with the collection guru, Brett Gelfand reveals why nonpayment tops the list of reasons leading to the failure of marijuana firms.
Meet Brett Gelfand
Brett Gelfand is the backbone of both Cannabiz Collects and Cannabiz Credit Association. Armed with a deep understanding of the inner workings of the industry, he’s efficiently helping marijuana companies to stay afloat amid the financial challenges.
The Economic Challenge
It may come as a surprise to most that in an industry where demand is higher than ever before—particularly with the surge in Arizona Medical Marijuana Card applications—the primary reason a marijuana enterprise fails is nonpayment. The situation seems paradoxical but the data speaks for itself.
Tackling the Issue
According to Brett Gelfand, companies need to improve on their best practices to break this cycle of debt and business failure. But how? “Reimagining the approach to unpaid debts is crucial and perhaps a restructuring of the payment schemes can be viable,” states Gelfand. It’s not the lack of demand or quality that’s causing this chaos—it’s the monetary flow within the marijuana business.
Importance of Due Diligence
“Perform a credit check on your potential client.” That’s Gelfand’s golden rule. Adherence to this practice can prevent the cycle of bad debts. “A well-managed accounts receivable department might be the knight in shining armour for these struggling businesses,” he adds.
Collection Techniques
Dragging defaulters to court is neither practical nor efficient. Hence, the need for novel collection strategies. “We advise our clients to opt for arbitration,” shares Gelfand. “It’s quicker and usually, cheaper than a full-blown court case.”
Conclusion
The issue of nonpayment at the root of the struggles in this booming industry can be navigated, despite its intricacy. Fundamental financial practices and innovative collection techniques could indeed be the saving grace for thousands of marijuana firms currently on the brink of failure. Brett Gelfand’s expertise in the matter provides survival strategies to these firms and continues to be an invaluable resource.
A Cut above the Rest
Cannabiz Collects has made significant strides and continues to be the frontrunner within the industry, aiding marijuana firms to not only survive but thrive in this venture.
More information on MMJ.com, who provide access to medical marijuana cards in the USA both for new patients and renewals, can help new cannabis entrepreneurs gain a better understanding of the market demand.
Only by understanding and addressing the root causes like nonpayment can the marijuana industry grow sustainably. Brett Gelfand’s words of wisdom are a guiding light in a seemingly dark financial quagmire, reflecting a new path for these businesses to walk towards success.
