While debt collection is essential, prevention is always the best strategy. At Legal Collects, our goal is to not only help recover debts but also empower cannabis businesses with the tools and knowledge to avoid them in the first place.

Tips for Avoiding Bad Debt

1. Know Your Clients

Conduct thorough due diligence before extending credit. At Legal Collects, we advise our clients on best practices for assessing credit histories, payment records, and reputations within the industry.

2. Set Clear Payment Terms

We can help you draft payment schedules, late fee policies, and clear contracts that set the right expectations upfront.

3. Use Technology

Leverage accounting software tailored for cannabis businesses to monitor cash flow and automate payment reminders. Our team can recommend solutions to streamline this process.

4. Request Deposits or Prepayments

For large orders, we suggest requiring partial payments upfront to reduce risk. Our legal expertise ensures these agreements are enforceable.

5. Monitor Accounts Receivable

Regularly review outstanding invoices and follow up promptly on late payments. If things go awry, Legal Collects is here to step in and recover what you’re owed.

When to Call in the Professionals

Even with preventative measures, some debts may become uncollectible. That’s when Legal Collects becomes your strongest ally. Our cannabis-focused attorneys and collection specialists save you time and resources while ensuring compliance with industry regulations.

By taking proactive steps and leveraging expert support, cannabis businesses can maintain healthy cash flows and focus on growth in this exciting industry. At Legal Collects, we’re here to help every step of the way.