Ultimate Credit Process

The UCP Overview

Managing credit effectively in the cannabis industry is critical to maintaining cash flow and minimizing risk. That’s why we’ve developed the Ultimate Credit Process (UCP)—a structured approach to credit management that empowers cannabis businesses with clear policies, actionable strategies, and essential resources to keep accounts receivable under control.

This page serves as your go-to resource for best-in-class credit practices, providing you with Standard Operating Procedures (SOPs), disclaimers, and templates to streamline your financial operations. Whether you're setting up credit holds, offering on-time payment discounts, or establishing airtight service agreements, you’ll find everything you need here.

Step 1 —
Customer Onboarding

How to effectively onboard new customers while mitigating risk

Step 2 —
Credit Appplication

Template designed to improve on time payment and streamline qualification 

Step 4 —
A/R Monitoring

Long term strategy to maintain visibility on potential delinquency 

Step 3 —
Credit Verification

Validating credit applications via the CCA platform and/or trade references

Each section below offers an expandable overview of a key UCP component, along with downloadable resources to implement these policies seamlessly into your business.

🔽 Click on a section to learn more and download the applicable materials.

  • Purpose: To establish a standardized process for onboarding new customers, ensuring proper credit verification, and setting appropriate payment terms to mediate risk.

    • Sales Responsibility:

      • Coordinates with the customer, pre-checks them on the CCA platform, provides credit application

      • Follows up with customer in the event that the application is missing info

    • Accounting Responsibility:

      • Coordinates with customer in the event that there is insufficient data to complete credit verification after credit application is complete

    Downloadable Attachments

    📂 CCA SOP: Onboarding New Customer

    📂 Onboarding New Customer Flow Chart PDF

    📂 CCA Email Signature & Disclaimer - Copy & Paste

  • Purpose: This discount for on-time payments policy incentivizes timely payments by offering structured discounts based on payment terms, reducing overdue invoices, and improving cash flow.

    Downloadable Attachments

    📂 CCA SOP: Discount for On-Time Payments 

Step 1: Customer Onboarding

Step 2: Credit Application

  • Purpose: Template designed to improve on time payment and streamline qualification.

    • Ensuring the Credit Application is filled out completely is the responsibility of sales

    • Walking the customer through the application while on a call is a great way to ensure timely submission and provides better customer experience

    • Provides a layer of checks and balances to sales process, reducing risk of late payment & account delinquency

    Downloadable Attachments

    📂 CCA UCP: Credit Application Template

Step 3: Credit Verification

  • Purpose: To establish a standardized process for verifying customer creditworthiness using the CCA platform and determining appropriate terms and credit limits based on the CCA Credit Rating and reported Accounts Receivable (AR) data.

    Downloadable Attachments

    📂 CCA SOP: CCA Credit Verification

    📂 CCA Credit Verification - Flow Chart PDF

  • Purpose: To establish a standardized process for verifying trade references when a new customer lacks sufficient credit data on the CCA platform. This ensures consistency and accuracy in credit approvals. (Refer to the Onboarding Customer SOP for initial steps.)

    Downloadable Attachments:

    📂 CCA SOP: Trade Reference Credit Verification

    📂 Trade Credit Verification - Flow Chart.pdf

Step 4: Accounts Receivable Monitoring

  • Steps to take once an account is delinquent past 30 days. 

    Downloadable Attachments

    📂 30 Days Past Due - Flow Chart.pdf

  • Steps to take once an account is delinquent past 60 days. 

    Downloadable Attachments

    📂 60 Days Past Due - Flow Chart.pdf

  • Steps to take once an account is delinquent past 90 days. 

    Downloadable Attachments

    📂 90 Days Past Due - Flow Chart.pdf

  • Purpose: This Credit Hold Policy ensures that customers adhere to payment terms by placing overdue accounts on credit hold, preventing further credit transactions until outstanding balances are resolved.

    Downloadable Attachments

    📂 CCA SOP: Credit Hold Policy

  • Purpose: A sequence of emails and templates to send out reminding customers of upcoming and overdue payments

    Downloadable Attachments

    📂 CCA UCP: Invoice Reminder Email Templates

Disclaimer: The materials provided in the Ultimate Credit Process (UCP) are only recommendations intended to serve as general best practices for credit management in the cannabis industry. These templates, SOPs, and disclaimers do not constitute legal advice and do not hold legal value until reviewed and approved by a qualified attorney. We strongly recommend consulting with a legal professional to ensure compliance with applicable laws and regulations in your state. We recommend seeking professional legal advice for your specific needs, as the CCA is not liable for any consequences resulting from the use of these materials.

If you have any questions, please get in touch with our community team here.