Capital Provider Unveils New Payment Solution As Cannabis Industry Struggles With Missed Or Late Payments

FundCanna, a provider of capital to the cannabis sector, has launched a new product – ReadyPaid, a solution designed to address the needs of the cannabis industry, aiming to bridge the gap of cash flow management between sellers and buyers.

"As the cannabis industry continues to evolve and grow, we've identified a critical need for financial solutions that address the unique cash flow management challenges faced by both vendors and buyers," stated Adam Stettner, founder and CEO of FundCanna. "FundCanna is well positioned to offer solutions that offer unrestricted cash and enable payment terms that match revenue cycles. Our new and innovative BNPL solution, ReadyPaid is designed to address the most pressing need of the cannabis industry, delinquent accounts receivable. FundCanna continues to innovate to meet the needs of the industry and help our clients grow. Our core funding products have been leveraged by nearly 2,000 clients and our average client has increased their top line revenue by over 50% since working with us."

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ReadyPaid Key Features

ReadyPaid, a cannabis industry business-to-business (B2B) Buy Now, Pay Later (BNPL) solution, offers Net30 payment terms with the added option to extend terms for up to six additional months. By enabling sellers to receive immediate payment while offering buyers the flexibility to manage cash flow, ReadyPaid promotes stability and predictability in both Accounts Receivable and Accounts Payable, reads the company's press release.

The solution is suitable for both ancillary and plant-touching transactions. It provides embedded technology, regulatory compliance, and flexible payment terms, with sellers getting paid upon checkout.

Read Also: Struggling With Cannabis Funding? These Finance Experts Have Solutions

The cannabis industry is rapidly expanding. BDSA forecasts sales to grow at a compound annual growth rate (CAGR) of 10% from 2023 to 2028, resulting in a $58 billion market by 2028. Despite this growth, according to Whitney Economics, the industry faces significant challenges with delinquent accounts receivable, including a staggering $3.8 billion in delinquent payments. A delinquent payment is a missed or late payment for a financial obligation, such as a loan, credit card bill, or rent.

Beau Whitney, founder and chief economist at Whitney Economics and upcoming speaker at the Benzinga Cannabis Capital Conference, shared these critical findings in a recent exclusive interview with Benzinga. "Only 27.3% of cannabis businesses in the United States are profitable," Whitney stated.

The industry ranks delinquent accounts receivable as their number one concern over IRS 280E and other concerns. FundCanna aims to address these issues with the new product.

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