The hashish business is sitting on a ticking time bomb – one which’s been quietly rising for years whereas most operators look the opposite manner.

Accounts receivable (AR) are ballooning to unsustainable ranges, and past just a few casual “blacklisted” teams on social media, nobody is speaking in regards to the monetary chokehold that is placing on the provision chain.

Proper now, greater than $2.24 billion in AR is circulating by the business, based mostly on information collected by CannaBiz Credit score Affiliation, a cannabis-specific credit score reporting platform.

The issue has metastasized over the previous 4 years, and whereas the majority of excellent AR sits primarily in three states, the info makes one factor clear: As markets mature and wholesale costs crash, delinquent funds surge.

This text was initially printed on MJBizDaily. Click on right here to proceed studying. 

The put up Unchecked Credit score is Suffocating the Hashish Provide Chain appeared first on Enterprise of Hashish.