The cannabis industry is sitting on a ticking time bomb – one that’s been quietly growing for years while most operators look the other way.
Accounts receivable (AR) are ballooning to unsustainable levels, and beyond a few informal “blacklisted” groups on social media, no one is talking about the financial chokehold this is putting on the supply chain.
Right now, more than $2.24 billion in AR is circulating through the industry, based on data collected by CannaBiz Credit Association, a cannabis-specific credit reporting platform.
The problem has metastasized over the past four years, and while the bulk of outstanding AR sits mainly in three states, the data makes one thing clear: As markets mature and wholesale prices crash, delinquent payments surge.
This article was originally published on MJBizDaily. Click here to continue reading.
The post Unchecked Credit is Suffocating the Cannabis Supply Chain appeared first on Business of Cannabis.
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Accounts receivable (AR) are ballooning to unsustainable levels, and beyond a few informal “blacklisted” groups on social media, no one is talking about the financial chokehold this is putting on the supply chain.
Right now, more than $2.24 billion in AR is circulating through the industry, based on data collected by CannaBiz Credit Association, a cannabis-specific credit reporting platform.
The problem has metastasized over the past four years, and while the bulk of outstanding AR sits mainly in three states, the data makes one thing clear: As markets mature and wholesale prices crash, delinquent payments surge.
This article was originally published on MJBizDaily. Click here to continue reading.
The post Unchecked Credit is Suffocating the Cannabis Supply Chain appeared first on Business of Cannabis.
Continue reading...
how on earth is this allowed to happen. There's simply no way that amount of flower, oil and other forms of medical cannabis can just be pulled out of thin air to honour that? 
