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Cannabis wholesale platform LeafLink announced its Payment on Sell Through (PoST) on Thursday.
What Happened: The new payment option for cannabis wholesale guarantees payments to brands as retailers pay for what they sell. This is LeafLink’s third payment option available on the platform, alongside Direct Pay and FlexPay.
LeafLink acquired Dama Financial in July, to offer customers access to a reliable, secure and compliant banking solution.
The new payment option is another significant step towards building a cannabis e-commerce ecosystem to help businesses operate more efficiently.
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Why It Matters: Using PoST payment is guaranteed to the brand – the supplier – who receives automated weekly payments based on the prior week’s sell-through by the retailer.
The new model seeks to help alleviate delinquent payments to brands, free up needed capital for retailers and provide data insights. PoST improves inventory insights by identifying the right SKUs, quantities, and order frequency for each storefront.
The delinquency is mainly due to missed payments from dispensaries to brands and cultivators.
Retailers are in a challenging environment and struggling with cash flow constraints, limited startup capital, federal tax issues from ongoing national prohibition, and competition from the illicit market.
“The need for solutions that address delinquent payments is as critical as ever. With PoST, we’re putting in place a tool that creates transparency and guarantees payment for everyone involved,” said LeafLink CEO Artie Minson. “It puts an end to delinquent payments while helping dispensaries reduce upfront spend on products and losses on the backend.”
Minson added the company has been upgrading its platform to meet the customers’ needs resulting in an average of 100,000 orders per month.
What’s Next: PoST is now available in Michigan, Mississippi and Colorado. The offering will be expanded to additional states this year and next, LeafLink said.
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“}]] Cannabis wholesale platform LeafLink announced on Thursday Payment on Sell Through (PoST).The new payment option for cannabis wholesale guarantees payments to brands as retailers pay for what they sell.This is LeafLink’s third payment option available on the platform, alongside Direct Pay and FlexPay. Read More