The Ontario Cannabis Store (OCS) is reducing its payment processing timelines for products sold through its Flow-Through ordering program. 

Beginning July 9, the OCS will adjust its payment terms for products sold through this program to “approximately” 15 days, where possible. The OCS’ standard payment term for products is up to 60 days. 

The provincial cannabis agency says the change will better support producers by giving them quicker access to cash. This builds on previous changes to payment terms for products sold through its central warehousing system.

Ontario announced its Flow-Through program in 2021. The program allows retailers to order products not stocked in the Ontario Cannabis Store (OCS) warehouse and has been undergoing a long development phase, from working with just a handful of suppliers to opening the program up to more widespread industry use. 

Retailers can order products from Flow-Through that are not normally available through its central distribution warehouse, providing retailers with access to more unique products or even white-label products.

Provinces can often have different payment terms for products sold through their jurisdiction, which can sometimes take several weeks or even months. Such payment terms can be challenging, especially for smaller producers with less available capital than publicly traded companies. Provinces may also apply additional fees and taxes for products sold in their markets.

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