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Accounts Receivable

Articles on Accounts Receivable from Headquarters — insights on cannabis CPG, staffing, finance, and operations.

• 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.