No Credit, More Problems: New Mexico’s Passed Due Problem
In New Mexico's rapidly growing market, a quiet but dangerous trend is taking root: retailers are treating vendors like open bars, running up large tabs with no intention of settling the bill. What used to be an occasional late payment has now turned into a systemic issue, putting strain on small producers and destabilizing an industry already balancing on thin margins.
Across the country, states are waking up to this financial gray zone. In New Jersey, licenses have been revoked for unpaid fees. California introduced Assembly Bill 766, requiring cannabis retailers to pay invoices within 15 days of the due date or risk citations. New York is proposing a mandatory 30-day payment deadline, with enforcement powers granted to its Office of Cannabis Management. Michigan may deny or revoke licenses based on unpaid business debts, and Colorado has clarified that cannabis contracts are enforceable in civil court.
New Mexico: Enforcement Without Accountability
While New Mexico has taken action against growers exceeding plant counts and other compliance issues, it hasn’t yet laid out a clear path for handling retailer debt. The state’s Control Division (CCD) is aware of the issue, but according to insiders, they haven’t received many formal complaints—perhaps because small operators are afraid of burning bridges, or don’t know where to turn. In the meantime, bad actors continue to thrive off unpaid product, while their vendors eat the cost.
When the Tab Comes Due
This isn’t just about hurt feelings. According to Whitney Economics, 43% of cannabis operators nationwide report difficulty servicing their debt due to unpaid invoices, and 32% say they’ve fallen behind on taxes as a result. It’s a cascading failure: one unpaid invoice can ripple out and damage half a dozen businesses.
Vendors Are Fighting Back—Quietly
Several groups have floated the idea of a formal "blacklist" to track retailers who consistently fail to pay vendors. But the reality is, there’s always two sides to every story, and dragging businesses into disputes can become more trouble than it's worth. That’s why a new concept—the “Term Friendly Index”—is gaining traction. Instead of naming and shaming, this system crowdsources vendor feedback to rank retailers based on how well they honor payment terms. Every store starts neutral, and ratings are built over time through vendor-submitted reviews.
Record Everything
These reviews won’t be public-facing—for now—but they offer a discreet, internal tool for vendors to navigate who’s reliable and who might be a financial risk. Until regulators step in with real protections, producers and manufacturers need to take matters into their own hands. That means tightening up contracts with clear payment terms, late fees, etc. Leave a breadcrumb so if and when it comes time to collect, you have the receipts to prove it.
If you you feel like you’ve been burned, maybe its time to start talking about it?
