Revolutionizing Cannabis Financing: Community Savings Leads the Charge
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Community Savings and We Can Capital's New Milestone
In a historic achievement for the cannabis industry, Community Savings, a well-regarded credit union based in British Columbia, alongside We Can Capital Inc., has crossed an important threshold by distributing over $5.3 million in working capital to licensed cannabis producers. This significant milestone reflects their shared commitment to transforming financial access for this burgeoning sector.
The Challenges Faced by Cannabis Producers
Cannabis producers frequently encounter numerous obstacles when trying to access traditional financial services, which can stifle their growth and bottom lines. The innovative program offered by Community Savings and We Can Capital is specifically designed to fill this void. It allows licensed producers in British Columbia to expedite the collection of funds for their invoices associated with purchases from government boards like the BC Liquor Distribution Branch and others.
Understanding the Cannabis Account Receivable Purchasing Program
This pioneering program enables cannabis producers to obtain quick access to funds through an accounts receivable purchasing model. Under this provision, a cannabis licensed producer submits an invoice upon delivering goods. Rather than enduring long waits for payment from government agencies—often stretching from 14 to 60 days—they can sell their invoice to Community Savings. The credit union then provides an upfront cash advance of 75-82.5% of the invoice amount on the same day, offering immediate liquidity.
The Benefits of Quick Cash Flow
Obtaining early cash flow from such programs allows producers to enhance their operational capabilities significantly. They can not only expedite production processes but also negotiate favorable terms with their suppliers, ultimately leading to better financial outcomes. Moreover, these advances eliminate unnecessary costs that would arise from traditional financing methods.
Expanded Limits and Future Growth
As interest in this program has grown, Community Savings has raised its purchasing limit from $500,000 to $750,000 for existing partners like Woody Nelson, a cannabis producer located in Nelson, British Columbia. This adjustment allows them to widen their product range and fulfill existing customer demands, which is only achievable through substantial liquidity and financial robustness.
Testimonials from Industry Leaders
Toby Summers, the Director of Woody Nelson Inc., emphasized the program's transformative impact, stating, "The liquidity from Community Savings has provided us with the necessary inventory to bolster growth, leading to our first quarter of positive EBITDA." This highlights how instant access to cash is crucial for continuous growth and success in this competitive industry.
A Commitment to Fair Practices
According to Mike Schilling, the President and CEO of Community Savings, the organization is devoted to ensuring that cannabis businesses are afforded the same financial products available to other sectors in Canada. His optimism is reflected in the rapid uptake of their programs, which began just recently, highlighting their responsiveness to market demand.
Partnerships Driving Progress
Joshua Reynolds, the Partnership Director at We Can Capital, expressed gratitude for the opportunity to support companies like Woody Nelson, underlining the positive ripple effects of providing instant financial resources. His commitment underscores the importance of collaborative efforts in strengthening the financial infrastructure necessary for cannabis enterprises.
Contact Information for Cannabis Producers
Cannabis licensed producers looking to improve their financial position can reach out for additional information regarding the program. They can find assistance through Community Savings and We Can Capital by visiting their official websites or by calling their customer service.
About Community Savings Credit Union
Community Savings Credit Union aims to enroll working individuals to foster a fairer financial ecosystem. As the largest unionized credit union in British Columbia, it specializes in both personal and business banking, making significant strides in catering to the cannabis industry through tailored financial solutions.
About We Can Capital
We Can Capital stands as a key specialist in providing working capital specifically to cannabis enterprises. They focus on invoice factoring solutions designed to foster sustainable growth within the sector. Their mission is to partner effectively with cannabis firms to boost financial stability across the industry.
Frequently Asked Questions
What is the impact of Community Savings’ program on cannabis producers?
The program allows cannabis producers to access cash quickly by selling their invoices, helping them manage cash flow effectively and grow their operations.
How does the accounts receivable purchasing program work?
Cannabis LPs sell their invoices to Community Savings for an upfront cash advance, enabling immediate access to necessary funds instead of waiting for payments.
Why are traditional financial services often inaccessible to cannabis businesses?
Cannabis businesses face banking discrimination and restrictive lending practices, making traditional financing solutions less available compared to other industries.
What are the benefits of early payment for cannabis producers?
Early payment allows them to negotiate better supplier terms and enhance production timelines, leading to improved profitability and operational efficiency.
How can cannabis licensed producers get involved with this program?
Producers can contact Community Savings or We Can Capital directly for more information about eligibility and terms of the accounts receivable purchasing program.
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