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Subjects: Product/Service, Business Update

First Business Credit Score Reports for Cannabis Industry Officially Launch From CTrust

CTrust, the first and only cannabis business credit scoring and risk monitoring agency, announced today the beta launch of its cannabis credit scoring platform, now available to financial institutions, investors and business owners.

The 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 FinTech platform is the invention of Dotan Y. Melech, whose nearly 30 years of experience in asset management, court-appointed bankruptcy and receivership working with distressed businesses and creditors gave him unique insight into the dire 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 across 3 principle areas?asset, structure and character, including Metrc track-and-trace, point of sale (POS) software, company structure documents and third-party market data, while using data sourcing triangulation benchmarked to a Kappa Index and distilled into a recognizable and easy-to-understand score on a scale of 200 - 800.

"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," said 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 ensures that cannabis lenders and industry financial partners have a comprehensive risk assessment, instilling confidence in their decisions of potential investments and to better align rates. 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," said Bob Hoban, CTrust's founding member, chairman of the board and preeminent global cannabis law expert. "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."

During the 2024 beta program, a limited number of financial institutions that enroll early will receive free access to CTrust's platform to draw CTS and Reports for their existing depository accounts. This includes an initial demo and consultation, which provides a roadmap for lending policies, loan documents and objective risk analysis. State-licensed CRBs can begin to apply for a free Cannabis Trust Score during the beta program. CRBs must provide documentation, such as financial, tax and corporate records, policies and procedures and seed-to-sale and POS records.

For additional information, contact [email protected]

About CTrust

CTrust is a FinTech solution that increases operational and financial transparency into cannabis businesses to reduce investment risk, help cannabis businesses gain better access to capital, and allow investors and debt holders to more effectively price capital and manage market exposure. Developed in 2022 in response to a seismic cannabis industry shift from equity investment to debt financing, CTrust's proprietary formula and rigorous approach to risk evaluation, scoring and monitoring facilitates more equitable business, investment and debt financing opportunities for founders, shareholders and creditors, keeping more cannabis businesses thriving in their communities. For more information, visit CTrust.io and connect on LinkedIn.

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