Businesses operating in the cannabis market soon will be able to access traditional bank credit. When this happens, every aspect of the market—grower, manufacturer, wholesaler, distributor, dispensary, and retailer—will have access to credit, provided they meet creditworthiness norms. From that point forward, the cannabis industry will change forever. In the one to two years following access to banking, exponential growth will occur and small enterprises will lose their first-move advantage to larger corporations if they do not adapt and change quickly.
Why will growth happen? Consider your current customer with $2,000 in cash on hand. They are now only a $2,000 customer, nothing more. But, if they can get bank credit—say, a $5,000 credit line—they become a $7,000 customer. Multiply that figure by the number of customers you serve, and your business will expand accordingly. At that point, the question becomes whether you sell companies the additional merchandise on credit terms or continue to require them to pay cash at time of delivery.
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