Cannabis-focused financial service provider FundCanna introduces Buy Now Pay Later (BNPL) solution for operations within the marijuana industry

The cannabis industry, traditionally cash-heavy due to financing challenges, is experiencing a significant shift with the introduction of ReadyPaid, a BNPL tool by FundCanna. This innovative solution is designed to provide flexibility for buyers and instant payment for sellers of cannabis goods.

FundCanna, a company primarily serving the cannabis industry, launched ReadyPaid, a business-to-business buy now, pay later tool. The tool, available in the United States and Canada, is live in all legal domestic cannabis markets and is being used by 180 sellers.

Approval for ReadyPaid takes just minutes, and financing is available the same day as approval. FundCanna's sophisticated system determines within seven minutes how much a buyer is approved for. Sellers of cannabis goods, who are not financial experts, often struggled with underwriting buyers. With ReadyPaid, this problem is alleviated.

Sellers of cannabis goods receive payment at the point of sale, with no recourse if buyers default. This instant payment allows sellers to manage their cash flow more effectively, unlocking growth opportunities. Buyers, on the other hand, are allotted standard net 30 terms at no cost, with an optional additional six months to repay what they borrowed.

According to Whitney Economics, the cannabis industry's unpaid receivables are an existential risk. Only 5%-8% of financial institutions lend money to cannabis businesses, with 90% only lending for real estate. This leaves a significant gap in the market that ReadyPaid is filling.

Buyers using ReadyPaid are acting as an extension of FundCanna's internal business development and sales teams. They are seeking to free up their cash flow, allowing them to invest in their businesses and grow. This trend is becoming increasingly prevalent, with more and more buyers turning to ReadyPaid for their financing needs.

In Q2 2024, 831 banks and credit unions served cannabis companies, most in a depository nature. However, ReadyPaid is providing a unique solution that goes beyond traditional banking services, offering instant payments and flexible repayment terms.

In conclusion, FundCanna's ReadyPaid is revolutionising the cannabis industry by providing a much-needed financing solution. Its instant payment feature and flexible repayment terms are helping sellers manage their cash flow more effectively, while buyers are using it to free up their cash flow and unlock growth opportunities. As the cannabis industry continues to grow, it's clear that innovative solutions like ReadyPaid will play a crucial role in its success.