First Business Credit Score Reports for Cannabis Industry Officially Launch From CTrust
July 09 2024 - 8:03AM
Business Wire
Credit-Scoring System Yields Unprecedented
Level of Transparency, Benefiting Financial Institutions, Investors
and Cannabis Business Owners
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 info@ctrust.io
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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