CTrust Launches Credit Scoring Platform for Cannabis Companies
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CTrust Launches Credit Scoring Platform for Cannabis Companies

CTrust Launches Cannabis Industry Credit Scoring Platform Available to Financial Institutions, Investors, and Business Owners

CTrust Launches Credit Scoring Platform for Cannabis Companies

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The Cannabis Trust Score (CTS) and CTrust Report provide a credit score with detailed information on the financial health and credit risk of state-licensed cannabis businesses (CRBs).

The platform was conceived by Dotan Melech, CEO of CTrust, whose experience in asset management, gained while working with financially distressed companies and creditors, allowed him to see the need to develop better risk assessment tools for credit information offices.

Using a proprietary algorithm, the cannabis-specific CTS and report incorporate data from over 1,700 correlation points across 42 unique business categories in 3 primary areas. These three areas include assets, 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 provide a technology- and data-driven approach to assessing lending risk to the benefit of the cannabis industry,” Melech, CEO of CTrust. “The reality is that without a standardized and trusted risk-measurement formula, the industry is unlikely to benefit from expanded access to traditional financing and other financial services, even with federal legalization or a reorganization of cannabis.”

The CTS and report provide cannabis lenders and industry financial partners with a comprehensive risk assessment, building 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 that reflect the business, rather than solely the risk of federal or state legalization.

“The CTrust Cannabis Trust Score and Report enables lenders to make more informed cannabis investment decisions that have not been possible before,” said Bob Hoban, CTrust founding member, chairman of the board and a leading global expert in cannabis law. “Looking forward, we see the CTrust and the report being useful to ancillary professional services firms, such as consultants or insurance, law and accounting firms, and even as an early risk cornerstone for mergers and acquisitions.”

CTrust is the first and only credit rating and risk monitoring agency for the cannabis industry.

During the 2024 beta program, a limited number of financial institutions that sign up early will receive free access to the CTrust platform. This includes an initial demo and a consultation that provides a roadmap for lending principles, loan documents, and unbiased risk analysis. Additionally, state-licensed CRBs can begin applying for a free Cannabis Trust Score during the beta program.