From Debt Woes to Dollar Gains: Meet the Pioneer of Cannabis Collections

Vangst/Jul 26, 2023

hero-graphic-From Debt Woes to Dollar Gains: Meet the Pioneer of Cannabis Collections

The Story of How Brett Gelfand is Making Debt Collections Cool

This week on "Proud to Work in Cannabis," host Karson Humiston, CEO & Founder of Vangst, sits down with Brett Gelfand, Founder & Managing Partner at CannaBIZ Collects, the first full-service collections agency focused on the cannabis industry. Get ready to be inspired and informed as we delve into Brett's entrepreneurial journey and discover how CannaBIZ Collects is transforming the landscape of debt collections for the betterment of the cannabis community.

The Inception of CannaBIZ Collections

Brett Gelfand's path to becoming the Founder of CannaBIZ Collects began in 2015 when he entered the cannabis industry. Initially serving as CEO of a company, Brett faced challenges with debt collection, which led to the idea for his own business. Drawing from his father's background as a commercial collection attorney, Brett saw an opportunity to address the debt collection gap in the cannabis sector. Though initially reluctant to pursue this avenue, Brett's determination and vision ultimately led to the establishment of CannaBIZ Collects in 2017.

Refresher on Collections Agencies in the Cannabis Industry

Before CannaBIZ Collections, there were no collections agencies dedicated to the cannabis industry. Brett's team worked diligently to train their collectors as experts in this field, providing a valuable service to cannabis businesses. By understanding the unique nuances of the cannabis industry, CannaBIZ Collects offers much-needed support to both small and large cannabis companies that previously struggled with collections agencies unfamiliar with the intricacies of the field.

The State of the Industry from Brett's Perspective as a Debt Collector

As the cannabis industry continues to grow, so do the challenges with accounts receivable strains on businesses. However, this also presents an opportunity for CannaBIZ Collects to step in and assist. Brett emphasizes the importance of businesses implementing preventative measures and escalation processes to protect themselves from potential bad actors who may not pay their bills.

Speculating at the Intent Behind Not Paying Your Bills

In the world of cannabis, not everyone is operating with integrity, and Brett highlights that even his debt collection services can be taken advantage of by unscrupulous individuals. However, he also acknowledges that there are genuine entrepreneurs facing financial difficulties and that CannaBIZ Collects works with these businesses to find mutually agreeable settlements and payment plans.

Best Practices for Cannabis Companies to Avoid Vulnerability and Prevent Being Taken Advantage Of

Brett advises cannabis entrepreneurs to prioritize administrative processes, ensure well-defined credit policies, and include them in initial contracts. By doing so, businesses can safeguard their interests and have recourse if payment issues arise.

The Process of Escalation Once an Invoice Goes Unpaid

When invoices go unpaid, the escalation process becomes crucial. Brett's team at CannaBIZ Collects uses their expertise and historical data to efficiently address delinquent accounts. The weight of a collections agency escalates the seriousness of the matter, often leading to faster payments.

Protecting Yourself from Being Owed Money in the Future

Brett introduces the Cannabis Credit Association, an affiliate/sister association of CannaBIZ Collects. The association aims to provide credit scores and tools for the cannabis industry, preventing bad actors from repeatedly taking advantage of the system. By sharing accounts receivable data, businesses can make informed decisions and protect themselves from potential payment issues.

Brett's Entrepreneurial Journey: Hardest Part of the Journey

Throughout his entrepreneurial journey, Brett has emphasized the importance of specialization and building long-term relationships in the cannabis industry. He envisions CannaBIZ Collects competing with larger agencies in the future while remaining committed to supporting the growth of the cannabis sector.

Proud to Work in Cannabis

We hope this episode with Brett Gelfand, Founder & Managing Partner at CannaBIZ Collects, has inspired you as a job seeker or professional in the cannabis industry. With CannaBIZ Collects leading the way in debt collection services tailored for the cannabis sector, the industry can thrive with confidence. Embrace the opportunities and challenges as the cannabis industry continues to evolve, and remember, we're all "Proud to Work in Cannabis." Be sure to tune in to this week's podcast episode and gain valuable insights from our remarkable guest. Together, let's shape the future of cannabis with positivity, knowledge, and innovation. Happy listening!

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