Accounts Receivable

Cannabis receivables behave unlike any other industry: net terms extended informally, counterparties no bank will touch, and 280E taxing revenue the moment it is booked rather than collected. These articles cover DSO benchmarking, credit policy, collections escalation, and the data problems underneath cannabis AR aging.

• Your Company Might Already Be on a Public "Doesn't Pay" List
  Cannabis built its own credit bureaus because no regulator would. One of them is public and searchable, the scoring methodology is secret, and most operators have never checked whether their own company is on it.
• The Most Expensive Sentence in Cannabis AR: "I Know the Guy"
  Cannabis is a handshake industry, and the handshake is financing the delinquency. Operators sit on receivables for six months to a year out of respect for the relationship, and by then most of the money is gone.
• Sales You Can't Collect Aren't Sales
  Operators are extending credit on terms no lender in America would accept, to counterparties no bank will touch, in an industry where the debt can't even be resold.
• Why Cannabis AR Metrics Matter More Than Your Monthly Revenue
  Cannabis wholesale brands are paying federal taxes on revenue they haven't collected.
• Fragmented Systems, Phantom Receivables: The Data Problem Behind Cannabis AR Aging
  Most cannabis brands don't have a collections problem. They have a data problem that makes collections impossible to manage.
• Why Cannabis Operators Can't Pay Their Bills on Time
  When your customers don't pay you on time, you can't pay your vendors on time. In most industries, a revolving credit facility absorbs that timing gap. In cannabis, there is no credit facility.
• Net Terms vs. COD: Managing Credit Risk for Cannabis Sales
  More than $4 billion in outstanding receivables now circulates through the cannabis supply chain, with delinquencies surging as wholesale prices drop.
• New York's 90-Day Payment Rule: Adapting Your AR Strategy to OCM Regulations
  With industry-wide delinquent receivables now exceeding $4 billion - roughly 20% of revenue tied up in unpaid invoices - the margin for AR inefficiency has collapsed.
• 5 Accounts Receivable Metrics Every Cannabis CFO Should Track
  These five metrics give CFOs the visibility needed to protect cash flow and identify collection bottlenecks before they become liquidity crises.