Introducing Payment on Sell-Through: Minimizing Payment Risks in the Cannabis Industry
Wholesale cannabis payments are notoriously complicated, marked by non-payment, costly options, and manual collections. Transactions remain risky for both buyers and sellers. LeafLink’s innovative solution, PoST (payment on sell-through), aims to address these longstanding issues, providing a new solution aimed at simplifying wholesale cannabis payments.
What is Payment on Sell-Through (PoST)?
PoST is a payment program that allows buyers to pay for products as they sell them. This is different from payment on delivery, where the buyer pays for the entire order upfront, and payment on terms, where the buyer pays for the entire order within a certain window (30 days, for example). Instead, the buyer pays only for inventory that has sold through.
Simply put, both buyers and sellers can minimize risks that are associated with wholesale cannabis payments.
How does PoST work?
LeafLink utilizes the buyer’s seed-to-sale* data to monitor sales volumes and automatically process weekly charges. Payment to the seller is ensured, as LeafLink verifies the buyer’s financial capacity. In the rare case that a buyer is unable to pay, LeafLink guarantees the transaction, so the seller never has to worry about non-payment.
What do sellers get with PoST?
- Increased Visibility
In addition to avoiding risky transactions, sellers get more visibility into their sales and product SKU performance. Sellers can see daily sell-through, so their sales teams can avoid selling products that won’t move and proactively initiate re-orders to get ahead of stockouts.
Sellers also gain new visibility into end consumer sell-through, so they can better understand market demand and adjust production accordingly.
- More Shelf Space
By minimizing the risk that buyers take on when they stock a new brand or products, sellers open the door to more shelf space. If buyers don’t have to pay for a product upfront, they’re more likely to agree to try the product or brand.
- New Dispensary Customers
Sellers can expand their brand into additional retail stores (or continue doing business with existing stores) without the risk of non-payment. By confirming sell-through before collecting payment, sellers can ensure that buyers will have the funds to pay.
- Automate Collections
Avoid the hassle of tracking down payments and tedious manual reconciliation processes with PoST. This allows sellers to dedicate more time to business growth rather than chasing overdue payments.
What do buyers get with PoST?
- Increased Working Capital
Say goodbye to upfront inventory costs! With our payment on sell-through model, buyers can save cash and focus on growth in other areas.
- Optimized Purchasing
By having daily insights into sales performance at the brand and SKU levels, retail buying teams can effectively analyze trends, identify product preferences, and make informed decisions on inventory management. This proactive approach enables them to avoid stocking stagnant products, anticipate demand, and ensure optimal stock levels to prevent stockouts and meet customer demand.
- More Brand Options, Less Risk
Experiment with new brands and get popular brands back on your shelves. LeafLink will reduce the risk for buyers so you’re not stuck struggling to pay for product that hasn’t sold.
- Automated Payments
Simplify your finance operations with LeafLink’s automated reconciliation and accounts payable system. No more manual invoice matching and payment decisions – LeafLink streamlines the process for you, giving your team more time to focus on strategic tasks.
- Bigger Savings
Maximize your savings by earning cash back rewards every time you make a payment through LeafLink. Enjoy the benefits of getting money back on your purchases and put those savings toward what you really need.
LeafLink’s Payment on Sell-Through (PoST) revolutionizes the wholesale cannabis payment landscape by mitigating risks and simplifying financial transactions for both sellers and buyers. This innovative solution not only guarantees payments, but also provides invaluable insights into product performance, automates tedious processes, and fosters stronger business relationships.
Interested in painless payments? Speak with our sales team today.
*Currently available for Metrc