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CTrust Launches Cannabis Industry Credit Score Platform 

Dallas-based cannabis tech company CTrust has announced the beta launch of what it describes as the industry’s ‘first and only’ comprehensive credit scoring platform for cannabis-related businesses.

This new service, now available to financial institutions, investors, and cannabis business owners, aims to provide a ‘standardized risk measurement tool’ for the cannabis industry as bankruptcies and consolidation continues to sweep through the sector.

Its ‘Cannabis Trust Score (CTS)’ offers a comprehensive credit score along with detailed insights into the financial health and credit risk of state-licensed cannabis-related businesses (CRBs).

CTrust’s proprietary algorithm evaluates over 1,700 data points across 42 business categories, focusing on assets, structure, and character. This data is distilled into a straightforward score ranging from 200 to 800, providing a clear metric for financial stakeholders.

Sources include Metrc track-and-trace systems, point of sale (POS) software, company documents, and third-party market data.

The platform has been developed by Dotan Y. Melech, a veteran in asset management and distressed business consultancy, who believes the industry ‘will struggle to gain access to traditional financing, even with potential federal legalization’.

Bob Hoban, a founding member of CTrust and expert in global cannabis law, added: “We foresee this tool being invaluable for ancillary services like consulting, insurance, legal, and accounting firms, and even as a critical factor in mergers and acquisitions.”

During the beta phase, a select number of financial institutions will gain free access to CTrust’s platform, allowing them to generate CTS and Reports for their existing accounts. This includes a demo and consultation to help institutions integrate the tool into their lending practices. State-licensed CRBs can also apply for a free Cannabis Trust Score by providing comprehensive documentation, including financial records and operational data.

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