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Collections Outreach

Updated

OVERVIEW

This article covers the Nabis collections for outreach and communication.

 

STANDARD OUTREACH PROCESS

  • Associate to send outreach via Upflow (1st outreach attempt) – see template below:

    • Upcoming due invoice: courtesy reminder - 5 days before invoice is due

    • 1st reminder: overdue invoices - 1 day after due date

    • 2nd reminder: overdue invoices - 7 days after due date

    • 3rd reminder: overdue invoices - 14 days after due date

  • If no response via Upflow, call the point of contact at the retailer and send personalized outreach via Front (2nd outreach attempt)

  • If unable to establish contact with Retailer Accounts Payable point of contact, the Associate will reach out to Customer Experience or Operations for an alternative point of contact

  • If an associate is unable to establish contact through the above steps, the Associate works with Lead Associate to search for additional contact information:

    • Search in Nabis platform for additional contact details

    • Search in DCC platform for license holder details

    • Search for another point of contact phone number and/or email in Google

    • Contact store general phone number and ask for the AP team

    • Reach out to top 3 brands with largest AR balances with Retailer and request another contact at the Retailer

  • If no response via Front, work with Lead Associate to call over phone and document phone call on Upflow (3rd outreach attempt)

  • If phone call is unsuccessful, mark the retailer as “unresponsive” in the Accounts tab in the Nabis platform

  • Escalate unresponsive retailer via escalation procedures below

 

NABIS’ RETAILER RESTRICTIONS

 

ESCALATION PROCESS

Escalations With Total Balance Below $25K (Total Past Due Balance) For Unresponsive Retailers

  • Lead Associates to escalate the retailer to Regional Managers and place retailer on “Excise Tax COD” restriction list as a precautionary measure, if the retailer is not already on “Excise Tax COD”

  • Regional Manager attempts to find new contacts and contact retailer via personalized email (5th outreach attempt)

  • If Regional Manager is unable to establish or obtain sufficient payment to cover all outstanding balance within 10 business days, place retailer on “GMV + Excise Tax COD” restriction list.

  • If Regional Manager is still unable to establish a payment plan within 10 additional business days, submit Final Demand Letter with legal counsel

  • The Final Demand Letter will allow for 10 business days for the Retailer to respond and remit payment or set up a Formal Payment Plan. If the Retailer is unresponsive to the Final Demand Letter, the Regional Manager will notify the Brand and Nabis Leadership that the account is uncollectible. Nabis will provide brands a listing of overdue / outstanding invoices, along with a template for submitting a legal complaint and offer to introduce the brands to additional collections agency support.

  • After determining an invoice or invoices to be uncollectible, Nabis will write off the order balances, notify the cash application team to flip the payment status to ‘Write-Off’ and send documentation to the brand representative.

  • Escalations With Total Balance $25K - $100K (Total Past Due Balance) For Unresponsive Retailers

 

PROCESS OVERVIEW

  • Once the Collection Team has exhausted all collection efforts and the Retailer remains unresponsive, the Regional Manager will notify Nabis Leadership (Controller, Head of Finance, Strategic Finance Associate, etc.), of the Retailer’s outstanding balance (excluding Retailers identified as those Nabis will never default)

  • Upon escalation of account to Nabis Leadership (Controller, Head of Finance, Strategic Finance Associate, etc.), Retailer will be moved to “Excise Tax COD” restriction list as a precautionary measure, if the retailer is not already on “Excise Tax COD”

  • Nabis Leadership will attempt to escalate and contact Retailer for payment or to establish a Formal Payment Plan

  • If Nabis Leadership is unable to establish plan with Retailer within 10 business days, Nabis Leadership will place the Retailer on “GMV + Excise Tax COD” restriction list.

  • If Regional Manager or Nabis Leadership are still unable to establish a payment plan within 10 additional business days, submit Final Demand Letter with legal counsel

  • The Final Demand Letter will allow for 10 business days for the Retailer to respond and remit payment or set up a Formal Payment Plan. If the Retailer is unresponsive to the Final Demand Letter, the Regional Manager will notify the Brand and Nabis Leadership that the account is uncollectible. Nabis will provide brands a listing of overdue / outstanding invoices, along with a template for submitting a legal complaint and offer to introduce the brands to additional collections agency support.

  • After determining an invoice or invoices to be uncollectible, Nabis will write off the order balances, notify the cash application team to flip the payment status to ‘Write-Off’ and send documentation to the brand representative.

  • Escalations Above $100K (Total Past Due Balance) For Unresponsive Retailers

 

PROCESS OVERVIEW

  • Once the Collection Team has exhausted all collection efforts and the Retailer remains unresponsive, the Regional Manager will notify Nabis Leadership (Controller, Head of Finance, Strategic Finance Associate, etc.), of the Retailer’s outstanding balance (excluding Retailers identified as those Nabis will never default)

  • Upon escalation of account to Nabis Leadership (Controller, Head of Finance, Strategic Finance Associate, etc.), retailer will be moved to “Excise Tax COD” restriction list as a precautionary measure, if the retailer is not already on “Excise Tax COD”

  • Nabis Leadership will attempt to escalate and contact Retailer for payment or to establish Formal Payment Plan

  • If Nabis Leadership is unable to establish a payment plan with Retailer in 10 business days, Nabis Leadership will escalate to Nabis CEOs and place the Retailer on “GMV + Excise Tax COD” restriction list.

  • If Regional Manager or Nabis Leadership or Nabis CEOs are still unable to establish a payment plan within 10 additional business days, submit Final Demand Letter with legal counsel

  • The Final Demand Letter will allow for 10 business days for the Retailer to respond and remit payment or set up a Formal Payment Plan. If the Retailer is unresponsive to the Final Demand Letter, the Regional Manager will notify the Brand and Nabis Leadership that the account is uncollectible. Nabis will provide brands a listing of overdue / outstanding invoices, along with a template for submitting a legal complaint and offer to introduce the brands to additional collections agency support.

  • After determining an invoice or invoices to be uncollectible, Nabis will write off the order balances, notify the cash application team to flip the payment status to ‘Write-Off’ and send documentation to the brand representative.

 

3RD PARTY COLLECTIONS - CannaBIZ Collects

As a brand partner with Nabis, we want to inform you about our strategic partnership with CannaBIZ Collects (CBC). We’ve partnered with CBC to provide streamlined third-party collections to our brand partners for severely delinquent vendor balances (90+ days overdue). While over 95% of invoices have historically been successfully collected by the Nabis team, some invoices are ultimately uncollectible through Nabis outreach efforts alone. CannaBIZ is able to employ more targeted collections efforts against specific vendors, negotiate settlements and help brand partners pursue litigation with zero upfront cost and success-based pricing. The process with Nabis is designed to be seamless and efficient, ensuring a smooth experience. We’ve noted below a brief introduction to CBC services and an outline of the steps involved:

 

CannaBIZ Collects is the first and leading US-based full-service Collection and Accounts Receivable Agency specializing in the legal cannabis industry. CBC was founded with more than 35 years of collection industry experience alongside former cannabis operators. CBC is uniquely equipped to handle every cannabis-related accounts receivable issue throughout the US. In order to sign up, you just need to follow the steps below:

 

  1. Reach out to AR@nabis.com to express your interest in submitting invoices to CBC.

  2. Nabis will introduce you to CBC and denote the invoices available for submission. If you are already signed up, you can feel free to inform ar@nabis.com which invoices you’d like to submit.

  3. You will be asked to sign the CBC Fee Agreement using a tracking-enabled SignNow link.

  4. CBC will add your information to their CRM.

  5. You will then be asked to complete a CBC Onboarding Google Form, so that Nabis has the correct client information for claims submission.

  6. Once the form is completed, you will inform Nabis about the invoices you’ve selected to be submitted to CBC.

  7. Nabis will then submit invoices to CBC on your behalf, helping create a more seamless collections process for you and driving faster turnaround time with difficult vendor balances.

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