Introduction

In this episode of the Founder Spotlight Podcast, we had the pleasure of speaking with Mike Blumenthal, founder of the Cannabiz Credit Association. Operating in the burgeoning legal cannabis industry, Mike’s company is tackling one of its most pressing challenges: credit and payment transparency. With cannabis businesses navigating unique regulatory and financial hurdles, the need for smarter tools is paramount. Mike shared his journey, the vision behind his company, and invaluable insights for entrepreneurs in emerging industries.

Origin Story

The story of the Cannabiz Credit Association begins with another visionary: Brett, a seasoned cannabis entrepreneur who has spent nearly a decade in the industry. For seven years, Brett worked in collections, managing over $150 million in debt. He noticed a recurring question from his clients: “How do I prevent this from happening again?”

Mike joined the company about six months ago, drawn by the enormous potential to solve this widespread issue. As Mike explained, “Collections are reactive, but what if we could take a proactive approach to ensure businesses maintain cash flow and get paid on time?” Thus, the Cannabiz Credit Association was born, providing a proactive solution to a chronic problem in the cannabis market.

Challenges & Breakthroughs

Building any business comes with its challenges, but operating in the cannabis industry—a young, highly regulated market—adds complexity. One of the Cannabiz Credit Association’s biggest hurdles has been awareness and adoption.

“The biggest challenge so far has just been getting the word out that this exists as a tool.” — Mike Blumenthal

Many cannabis operators remain behind in adopting modern credit tools, often relying on “net terms” without verifying customer creditworthiness. Mike and his team are not only building a solution but also educating the market about the immense value of credit transparency.

However, there’s no shortage of breakthrough moments. Over 200 members use the platform actively, including major players like Leafly and Apex Trading. This adoption validates the need for a tool that empowers businesses to mitigate risks and sustain profitability.

Product & Market Insights

The Cannabiz Credit Association offers a robust platform designed to make credit checks seamless and effective. Here’s how it works:

• Members gain access to two comprehensive, searchable databases.
• They can view payment histories, past collection records, and outstanding debts.
• The data helps businesses confidently assess customer creditworthiness without requiring additional paperwork.

This level of data-driven insight gives cannabis businesses a proactive edge, enabling them to negotiate terms with confidence and avoid costly payment disputes. Additionally, Mike emphasized how each market comes with its own nuances:

“Every market is different… but all business owners are pretty much subject to the same tax and profit pressures.” — Mike Blumenthal

Leadership & Company Culture

Under Mike’s leadership, the Cannabiz Credit Association has cultivated a mission-driven culture. His team focuses on creating an equitable cannabis industry that prioritizes transparency and trust. They also emphasize sustainable growth, choosing to bootstrap the business instead of seeking external funding.

“It really comes down to relationships. If you can build meaningful relationships and add value over time, you can build a great company.” — Mike Blumenthal

Mike’s approach to leadership is clear: build trust, address client pain points, and consistently add value to their businesses. It’s a strategy that has enabled the company to gain traction and expand its community of users.

Lessons & Advice

When asked to share advice for other founders, Mike highlighted two critical principles:

• Build strong relationships: “It’s all about relationships you build and the value you add.” Success stems from deep, meaningful connections with the right people.
• Focus on long-term value: Sustainable, profitable growth is more important than chasing quick wins. “We’ve never raised money… I really believe in building things sustainably.”

His advice resonates across industries, particularly for entrepreneurs navigating niche markets like cannabis.

Future Vision

The future of the Cannabiz Credit Association is undeniably exciting. With the cannabis industry expanding as more states legalize its use, the demand for tools like theirs will only grow. Here are some of the key advancements they’re working on:

• Credit Risk Recommendations: Turning data into actionable insights by providing tailored recommendations on payment terms based on customer history.
• Automated Reporting: Alerting businesses when a client’s credit status changes, such as being taken to collections.
• Integrations: Partnering with Cannabis Media to embed their reports into widely-used business intelligence tools, making the platform even more accessible.

The ultimate goal? To become a universal credit-checking tool ingrained in both the cannabis ecosystem and the regulatory framework.

“We hope to be ingrained with these organizations and governments… and really become a go-to tool for credit checks across the country.” — Mike Blumenthal

Conclusion

Mike Blumenthal’s journey with the Cannabiz Credit Association serves as a fascinating case study in solving complex problems within a highly regulated industry. His focus on proactive credit transparency, market education, and sustainable growth has positioned the company as a game-changer in the legal cannabis space.

As the cannabis market continues to grow, tools like the Cannabiz Credit Association will play a crucial role in fostering trust, reducing financial risks, and building a healthier business ecosystem. We’re excited to see what the future holds for Mike and his team as they continue to drive innovation in this fast-evolving space.

For even more insights from Mike, including key lessons for entrepreneurs and a deeper dive into the cannabis industry, be sure to listen to the full episode of the Founder Spotlight Podcast.