The problem
Accessing traditional working capital financing through government agencies or chartered banks came with high costs and strict terms
With payment terms of 60-75 days and a meticulous production cycle that takes roughly 150 days, ROI on craft cannabis cultivation has a long lead time. As a cannabis company, PURPLEFARM struggled to access traditional working capital financing through government agencies or chartered banks due to industry restrictions and B lender offerings came with high costs and strict terms.
PURPLEFARM Genetics, an innovative cannabis producer, faced significant challenges in securing working capital to support its ambitious growth and international expansion. Traditional financing routes were closed due to industry restrictions, creating a critical need for a reliable cash flow solution.
The solution
Improving cash flow without altering existing processes
After learning about Quickly and its solutions, PURPLEFARM Genetics quickly saw the value in implementing an Early Payment Program. The decision to implement Quickly was driven by the need to improve cash flow without altering their existing processes significantly.
Quickly introduced an Early Payment Program for PURPLEFARM Genetics, allowing them to receive early payments from their buyers in exchange for a small discount. This solution automated the payment process and integrated seamlessly with their existing accounting systems, providing the much-needed cash flow to support their rapid expansion.
Starting in early 2023, PURPLEFARM Genetics began utilizing Quickly to unlock earlier payments from their buyers. This initiative has enabled them to maintain cash flow for essential operational expenses such as insurance, utilities, and payroll. Since implementing Quickly, PURPLEFARM has expanded into Fredericton, New Brunswick, increasing their production capacity sixfold and growing their team from 20 to 100 employees. The ability to secure early payments has empowered them to pursue larger international customers, negotiate better terms, and expand their business without the burden of traditional financing constraints.
The result
Large international contracts and rapid growth
PURPLEFARM Genetics has seen impressive results since implementing Quickly. The Early Payment Program has allowed them to manage their cash flow effectively, support their rapid growth, and secure large international contracts that were previously out of reach.
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