The cannabis and CBD industry, like any other, suffers from past due accounts. It is quite a common occurrence for a CBD merchant to go hard after a client for failing to pay their dues. Although not a pretty move, it is sometimes necessary. When your company is at the risk of going bankrupt because of debt, you are left with very few options.
Here we have rounded up four great ways to recover CBD past due accounts. If you are caught in the web of cannabis industry debt, you might benefit from the read.
- Change your communication channel
Most CBD companies delegate the responsibility of invoice communication to their billing or AR departments. This is definitely in order. However, when a client does not respond to such communications, consider giving them a personal touch by switching the channel of communication. Have the company’s manager or any other senior person write them an email to grasp their attention. If possible, draft the email and send it yourself for better results. While at it, use kind and understanding language but make it clear that you hope they make their payments soon enough. Doing this will soften the heart of the receiver and will likely cause them to respond.
- Bring the bigwigs in the loop
If number 1 above fails to bear fruit, consider involving the customer’s big bosses in your communication. Draft another email with the same soft yet firm tone of voice but this time, cc in the major players. Be sure to keep things cordial by not pointing fingers on anyone in particular. Simply let them know that you are looking for any assistance whatsoever on the past-due account matter.
- Suggest a few solutions for your client
If you have been in the cannabis business for some time, you know that cash flow issues are quite the norm in the industry. Therefore, if your client still will not pay up, it might be a good idea to point them in the right direction with matters finance. Let them know that you understand their predicament and proceed to show them a few ways of escape. By doing this, your client will appreciate the help and will likely pay you back if the solution works.
- Utilize and AR app
If all else fails, you might be forced to forward your beloved client to collections. If you go this route, it is a good idea to use an AR management tool to communicate this to the client. A series of emails alerting them that their name has been forwarded can damage your relationship with them.
Essentially, an app automatically creates professional emails without sounding overbearing. It focuses on cute graphics and a subtle correspondence to drive the point home. A third-party pressure may be just what you need to motivate the reconciliation of your CBD-past due account.
Recovery of past-due accounts can be quite overwhelming. All CBD merchants would do anything to avoid following after their clients to pay their dues. But, it is a necessary evil that must be done to ensure the smooth running of your CBD business.