Is Hiring a Cannabis and CBD Collections Company Expensive

1. Is Hiring a Cannabis and CBD Collections Company Expensive? Have some unpaid invoices from some of your CBD clients? You are in good company. A study done by Sage in 2017 showed that 10% of invoices are either paid late or never paid at all. In the former case, most companies simply write off the invoice off because, well, it is paid a little too late. Although this study is general, it is also a depiction of the state of affairs pertaining to debt within the cannabis industry. Past-due accounts seem to be the order of the day for many CBD merchants. This is the reason CBD collections are making a living off of chasing people down to submit payments for their clients. As a CBD company owner, hiring a collection agency to handle your unpaid invoices is in your radar. If you have suffered cash flow problems because of past-due accounts, you know just the importance of a good collection agency. But just how expensive is hiring one? What Does A Collection Agency Do? Like other collection agencies, cannabis collections handle past-due account receivables. Essentially, they have attorneys and financial experts to handle commercial collections. A good CBD collection company understands all the idiosyncrasies of the CBD, hemp, and cannabis industries. They know the ins and outs of cultivation, processing, and distribution of CBD and the importance of relationships in the industry and are equipped at handling collections professionally. To be effective at their craft, most CBD collections offer skip tracing and investigation services. When you hire them, they will conduct a background check on your clients to know the top dogs and work out the best course of action. Some of them also offer a full financial service including credit consulting and A/R management.

2. Cost Considerations Different agencies offer different services. For instance, some are ideal for big CBD businesses while some deal with start-ups and smaller merchants. Ideally, CBD collection agencies are paid per commission. This would be a percentage of the accounts recovered. Some of them charge a flat fee on an agreed basis (often monthly) while some charge per call or letter. If an agency asks for a commission, it will basically be a specific percentage of your standard accounts. The accounts may be 60 days or 90 days old with some hope of reconciling it. Most collections charge 15-25% of past-due account receivables. Some others will ask to be paid 50% for a year-old unpaid invoice of under $75. So, in general, the rates of collection agencies are based on the amount and age of the past-due CBD account. Based on the information above, a collection agency is expensive when the claim or when it is long overdue. If you want to pay less, do not wait too long before forwarding your client to collections. Additionally, focus on hiring them for big collections. But overall, hiring CBD collections is your best bet at recovering your otherwise, lost money. Sure, it might hurt your wallet a little, but in the end, you will be thankful for making the decision. Articles Source : http://www.livinghighcurls.com/is-hiring-a-cannabis-and-cbd-collections-company- expensive/