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Opinion: Why aren’t your cannabis customers paying you?

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California cannabis companies’ recent attempts to recoup substantial debts have many in the industry asking: How did this credit crisis happen, and how can my company prevent similar issues?

The problem with extending credit is that unless you evaluate the credit worthiness of a company you are extending credit to, you may be taking an unreasonable risk.

One issue is that most cannabis companies that are extending credit do not have a formal “accounts receivable” or “credit” department to help manage the order-to-cash process.

delinquent cannabis accounts, Opinion: Why aren’t your cannabis customers paying you?
Sam Fensterstock

These facilities exist to ensure that customers are held to their credit terms and that payments are collected in a timely manner.

Not having these controls is probably the biggest mistake a cannabis company can make.

If you are extending credit, you must have a process in place to manage and ensure consistent cash flow to meet your company’s operating needs.

Here are four things that you need to consider if you want to extend credit and get paid for your products and services:

1. Hire an accounts receivable/credit manager

If you are going to extend credit, you need to hire a credit manager to oversee the credit-granting process, including developing and consistently applying the company’s credit policy, as well as managing and collecting the accounts receivable and the dispute-resolution process.

Periodically, the credit and collections manager will also review the credit status of existing customers and be responsible for evaluating the creditworthiness of potential customers.

The net result: increased sales, fewer bad debts, and a better bottom line.

2. Implement a credit application and credit-approval process

A credit application is a contract between buyer and seller. It provides basic information about your customer’s business and is one of the primary tools available for protecting your company and controlling credit risk.

Even customers who pay COD (cash on delivery) should fill out a credit application.

Securing a credit application does not guarantee payment, but it is one of the more significant documents to assist in making good credit decisions and collecting past-due accounts receivable and collection fees.

One of the biggest challenges to the cannabis market is making good credit decisions.

In the traditional B2B market, sellers have the luxury of access to credit data on both public and private companies through leading credit bureaus like Dun & Bradstreet, Experian and Creditsafe.

While none of these providers have cannabis-specific data, many are now gathering data about the cannabis market and have trade lines, UCC (Uniform Commercial Code), lawsuits and tax lien data available.

The No. 1 reason a small business fails is not paying taxes, and the leading credit bureaus all have monitoring and alert services to track this information.

3. Implement a collection strategy

In the traditional B2B trade credit world, if a customer has Net-30 payment terms, and they have not paid by day 31, they are considered past due and delinquent.

Mainstream companies have collection strategies detailing how to deal with customers that are past due and severely past due.

If you are extending Net-30 terms, when a customer is 90 days past due, they are considered seriously delinquent.

Given the volatile nature of California’s cannabis market, we believe a customer that is 60 days past due should be considered severely delinquent.

Here is a sample collection strategy to help manage a customer on credit terms:

  • Five days before the invoice is due, an email is sent out with copies of the outstanding invoices.
  • The day before the invoice is due, an email reminder is sent with a link to pay online as well as details about where to send a payment.
  • On day 31, if the invoice is not paid, an email goes out letting the customer know that they are now past due.
  • On day 35, if the invoice is not paid, a phone call is made to collect payment.
  • On day 40, an email demand is sent and a phone call is made.
  • On day 47, an email demand is sent and a phone call is made.
  • On day 52, a “past due” email is sent
  • On day 60, a “final demand” email is sent, letting the customer know that if payment is not received within 10 days, the account will be referred to a collection agency.
  • On Day 70, if no payment has been received, the account is sent to a collection agency.

4. Have a formal policy that moves nonpaying customers to collection

In the B2B collection market, average gross recoveries are in the 35% to 40% range, and the average account is placed at around 150 days past due.

In the cannabis market, however, recoveries are in the 15% to 20% range, and the average collections placement is 285 days past due.

Why?

Most debt in the cannabis market is uncollectable because companies do not have good internal collection strategies and hold on to nonpaying customers far too long.

Many times, when a placement is that delinquent, the customer is already out of business or uncooperative, and the only recourse is litigation.

Here are five signs that your cannabis customer may need to be placed for collection:

  • Your customer is over 60 days past due.
  • Your customer is not returning your phone calls or emails.
  • Your customer is purchasing erratically.
  • Your customer has stopped buying.
  • You receive negative trade information about the customer from other suppliers.

About 50% of payment issues are caused by companies not having the right process and people in place to manage order to cash.

To make sure your cannabis customers will pay you, implement the above four steps, and you should see a big difference in a short period of time.

Source: https://mjbizdaily.com/why-arent-your-cannabis-customers-paying-you/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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