The cannabis industry confronts a staggering $4 billion in unpaid receivables across its $35 billion legal market, a crisis that threatens the stability of supply chains and business operations nationwide. This overwhelming debt burden represents nearly 20% of revenue for many operators, creating severe cash flow challenges that hamper growth and threaten business survival.
The root of this problem lies in the industry’s historically cash-heavy nature, stemming from limited banking access and federal illegality that restricts traditional financing options. Only 5% to 8% of financial institutions serve cannabis businesses with lending products, and 90% of those focus exclusively on real estate rather than operational needs or inventory financing.
Less than 8% of financial institutions serve cannabis businesses, with 90% focusing only on real estate rather than critical operational financing needs.
This scarcity of financial services has trapped cannabis companies in legacy payment cycles, forcing them to operate with extended receivables periods that drain working capital and limit expansion opportunities. The absence of traditional merchant services compounds these challenges as cannabis transactions remain largely excluded from mainstream financial processing systems.
ReadyPaid emerges as a revolutionary solution to these industry-specific challenges through its fully automated Buy Now, Pay Later platform designed exclusively for cannabis B2B transactions. The system offers Net30 payment terms at no cost to buyers, with flexible extensions available for up to six months through their Net30 Flex option.
Most notably, sellers receive instant payouts upon checkout, eliminating payment risk entirely and providing immediate access to working capital. The platform functions like modernized factoring, a financing model widely adopted in agriculture and retail sectors, but specifically customized for cannabis industry requirements.
ReadyPaid’s embedded technology integrates seamlessly with seller websites, shopping carts, and point-of-sale systems, creating frictionless transactions for all parties involved. The real-time approval system delivers financing decisions within minutes, with same-day fund availability for approved buyers.
Automated compliance and background checks verify all participants meet evolving cannabis regulations, while embedded mapping engines assess buyer eligibility and risk within seven minutes. The platform operates in all legal U.S. cannabis markets, supporting both plant-touching and ancillary transactions to maximize market relevance. With the cannabis industry projected to reach a market size of $58 billion by 2028, ReadyPaid positions itself strategically within this expanding sector.
Since launch, over 180 sellers have adopted ReadyPaid, demonstrating strong market acceptance of this innovative financing approach. FundCanna, the company behind ReadyPaid, has funded over $200 million to more than 3,400 cannabis clients since 2022, with funded clients reporting average revenue growth of 74% following their financing relationships. As of Q2 2024, 831 banks and credit unions now serve cannabis companies, though most still provide only basic depository services.
This first-to-market solution addresses critical industry pain points through automation, compliance management, and risk mitigation. By eliminating seller payment risk and providing buyers with flexible payment timing aligned to their revenue cycles, ReadyPaid represents a fundamental shift toward financial stability and predictable cash flow management in cannabis B2B commerce.
