Recovering Outstanding Debts

 

 

The recovery of outstanding monies in a cannabis supply chain are not easy.  In spite of the fact that the US government may change the laws pertaining to some states use of cannabis, there is always a backlog when it comes to collecting arrears.

Cannabis, a controlled substance is a drug used for pain in most cases.  The weed is a listed government-controlled substance with a nappi or drug code and any quick withdrawal of this medication by a reseller due to their outstanding debts is a cause for concern.  You need the services a specialized collection agency that deals with the collection of outstanding debts in general and who has the ability to use various methods of collecting any outstanding debts.  Just because a reseller or a company has closed does not mean the debt has gone away.  The principal or public officer of the company is the person responsible for any outstanding debts and can be held liable and must be traced.

A responsible debt collecting agency does collect some debt but emphasizes that suppliers should be wary of the people or companies they supply the cannabis to.  The product itself is expensive and soon runs up debts in the hundreds of thousands.   There is an urgent need to perform credit checks at the same time ascertaining if the company to be supplied has a good payment record and also if there are any outstanding debts in that company.  This should be done prior to supplying product to a maybe bad payer.

Generally speaking debt collection is a lengthy process and can be expensive for the company who is owed the money.  Also, the debt collection agencies or credit bureau will raise a charge for their services which is quite normal.  Bi-products manufactured from cannabis such as CBD oil used for medicinal purposes requires large quantities of the weed and funds owed by these companies run high.  It is imperative for the accounts to be paid on a monthly basis.  The growers of the product are strict about payment for their supply.  They in turn have expenses for the collection and distribution of the product.  Many growers today use Hydroponics which is essentially growing in tanks or specially designed beds few with chemicals to produce much faster growth and therefore supply.

The Collection of outstanding debts for cannabis from resellers and users of the product is subject to abuse us, whilst the flow of product is substantial, the financial obligations of the users or manufacturers of bi-products are not being met.  A better method of debt collecting is the use of skip tracing which is far more effective than a credit bureau.  Skip tracing agents can trace the debtor’s business address, business phone the federal ID number, any world wide web addresses  and so will contact the debtor and arrange a payment schedule.  Once the debt has been recovered the collections company or attorney, whichever the case, will credit the company adding a charge for their service.  At the end of the day, collecting debts for the supply of cannabis can be expensive.