ZZFLUX Drives Efficiencies and Growth with Premier Business Banking
Learn how California operator, ZZFLUX, transformed their business with Dama Financial Premier Business Account.
Company Overview
The Challenge
A California cannabis industry veteran, Sevan Derohanian, CEO of ZZFLUX, has seen plenty of ups and downs. One challenge that has persisted throughout his career? Difficulty accessing banking and financial services.
Until 2019, his businesses were operating entirely in cash, which proved to be a security risk and a major source of stress. The logistics involved with managing cash pickups and transportation were onerous, and preventing on-site losses—whether due to errors or theft—was extremely difficult.
Between counting the actual cash, completing paperwork, scheduling pickups, confirming receipt…paying bills was a time suck. Processing a single cash payment could take ten minutes or more. When you’re paying a few dozen vendors each week, that time really adds up.
Even simple tasks, like sending an employee to fill up the company van with gas, required paperwork and manual counting of cash. The time being spent on maintaining basic financial operations was just too much.
Not to mention, it was expensive.
“At one store, the biweekly payroll was $16K because of all the back office headcount we needed to keep operations running. Given the margins in cannabis, our overhead was way too high.”
The Solution
Sevan opened an account with Dama Financial in 2019, and it transformed the way he handles business purchases and payments.
The Results
REDUCED BILL PAY TIME BY 90%
“With Dama, we can now complete many of our payments digitally in about a minute. Plus, there’s a digital paper trail, so we can quickly settle disputes regarding vendor payments. It’s so much easier than handing cash to a driver – everyone feels more comfortable and confident.”
It’s also helped him simplify receivables for his distribution business. They receive transfers instantly from customers who are banking with Dama by LeafLink, making it easy to confirm payment for deliveries as they’re made.
“If the customer is banking with Dama, they’re basically a guaranteed payer. Those are some of our favorite customers.”
Day-to-day operations are also easier, thanks to Dama by LeafLink debit cards.
“When our employees need to make small purchases, they can just take our Dama debit card. No more counting cash and filing paperwork for every little thing.”
Using Dama by LeafLink has allowed ZZFLUX to eliminate cash from many of their B2B operations, saving them time and money. When they do take cash at their dispensaries, Dama by LeafLink makes it much easier to manage those funds securely and efficiently.
“With Dama, we deposit all our cash in the Smart Safe and the funds are in our account the next business day regardless of when the cash pickup actually comes.”
Simplifying cash operations has allowed ZZFLUX stores to realize significant savings on overhead expenses at their retail locations.
66% REDUCTION IN BACK OFFICE EXPENSES
“Handling cash is no longer the biggest line item in our budget. At one remote store we were able to cut cash handling expenses by 66%.”
And for the first time in 18 years, Sevan has built a partnership with a banking representative: his account manager, Felicia.
“Felicia is one of the keys to success for us. She’s so easy to work with, it feels like she is available around the clock. She’s there to answer questions and guide me when I need help making a transfer. It’s as good as it gets.”
What’s Next?
Sevan is working to go 100% cashless for all of his business transactions moving forward. And with the efficiencies he’s been able to achieve using Dama by LeafLink, he has plans to open more stores all over the LA area.
“There were times in this business where I wasn’t sure we’d be able to make it. I see longevity now.”
Learn more about banking with Dama Financial by LeafLink, or request a free consultation.
