CTrust launches credit scoring platform for cannabis businesses

CTrust is launching a cannabis credit scoring platform, available to financial institutions, investors, and business owners.

CTrust’s Cannabis Trust Score (CTS) and Report provides a credit score with detailed insights into the financial health and credit risk of state-licensed cannabis-related businesses (CRBs).

The platform was invented by Dotan Melech, the CEO of CTrust, whose experience in asset management working with distressed businesses and creditors gave him insight into the need for better risk assessment tools for CRBs.

Using a proprietary algorithm, the cannabis industry-tailored CTS and Report incorporates data from more than 1,700 correlation points across 42 unique business categories within 3 main areas. Those three areas include asset, structure and character, point of sale (POS) software, and company structure documents and third-party market data.

“CTrust, and its Cannabis Trust Score and Report, provides a technology and data-driven approach to evaluating lending risk for the benefit of the cannabis industry,” Melech, CEO of CTrust. “The reality is that absent a standardized and trusted formula to measure risk, the industry is unlikely to benefit from expanded access to traditional financing and other financial services even with federal cannabis legalization or rescheduling.”

The CTS and Report provides cannabis lenders and industry financial partners with a comprehensive risk assessment, instilling confidence in their investment decisions. Additionally, CRBs can provide their current or potential financial partners with additional risk transparency to receive fairer loan terms and rates reflective of that company, not solely on federal or state legalization risk.

“CTrust’s Cannabis Trust Score and Report empowers lenders to make more informed cannabis investment decisions that haven’t been possible until now,” Bob Hoban, CTrust’s founding member, chairman of the board and preeminent global cannabis law expert, said. “Looking ahead, we see the CTS and Report useful for ancillary professional service companies, such as consultants or insurance, legal and accounting firms or even as an early risk keystone for mergers and acquisitions.”

CTrust is the first and only cannabis business credit scoring and risk monitoring agency.

During the 2024 beta program, a limited number of financial institutions that enroll early will receive free access to CTrust’s platform. This includes an initial demo and consultation, which provides a roadmap for lending policies, loan documents and objective risk analysis. Also, state-licensed CRBs can begin to apply for a free Cannabis Trust Score during the beta program.

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