A group of California distributors and brands representing more than half the state’s wholesale B2B cannabis market has hired a credit association to rate retailers in the hopes of reducing the hundreds of thousands of dollars in unpaid invoices – and reining in repeat offenders.
The Credit Management Association (CMA), a nonprofit based in suburban Los Angeles, is analyzing accounts receivables and other documents from more than a dozen distributors and brands.
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The CMA plans to email each of the distributors and brands a “do not sell list” of 25 California retailers that don’t pay their bills on time – a seismic problem in the world’s largest cannabis market and across the United States.
The “red” list, according to group members, highlights retailers and delivery providers that owe at least $25,000 for products and are 90 days late or more on payments, often categorized as delinquent.
Read full article on Marijuana Business Daily
