Cannabis Invoice Financing

Delancey Street creates opportunities where non exist by providing capital to those in need. We are the fire that stokes entrepreneurship. If you’re in the Cannabis/MMJ industry and need invoice financing then we can help you.
What are invoices/receivals
Invoices, also known as accounts receivables, are the bills you give to customers – which they pay in the future. Often, companies sell a product, or provide a service, but aren’t paid right away. In this case, the business issues invoices to the customers.
What’s Cannabis invoice factoring
Companies who issue invoices have to get paid to wait. Sometimes, this can be fast – and sometimes, it can be REALLY long. With Cannabis invoice factoring, a cannabis/MMJ company sell the invoice to our factoring company for a discounted price. We collect the invoice from your customer.
How does factoring work?
Once your customers are approved based on their creditworthiness and ability to pay, we’ll lay out terms for you to sign. Provided your customers pass the credit check, we’ll advance up to 80-90% of the outstanding invoices. The difference is held for a month and then released, minus a factoring fee. Factoring fees range anywhere from 1-3% of gross receivables per month.
What’s Cannabis invoice financing
Unlike Cannabis invoice factoring, where a Cannabis factoring company purchases the invoice directly —- invoice financing is when a factoring company provides a short-term loan. This loan is being collateralized by invoices from your clients. In essence, you’re borrowing money against your invoices. This is a loan, and as a result – less risky to business owners.
Is invoice factoring considered a loan?
No. Selling invoices for immediate cash isn’t considered a loan. There is no interest on it. It will not impact your credit score if the client doesn’t pay. However, that doesn’t mean you’re not liable for the client doesn’t pay. Invoice financing, however, can be considered a loan – because the Cannabis factoring company isn’t purchasing the invoice directly. They are lending against the invoice.
Recourse vs Non Recourse
If you sell your invoice to a Cannabis factoring company – and the client doesn’t pay, then you aren’t liable if you have a non-recourse factoring deal in place. If you sell the invoice to a factoring company, and the customer doesn’t pay – then you could be liable to pay the balance. This is called recourse factoring.

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