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CTrust Launches the First Ever Business Credit Score for the Cannabis Industry

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CTrust has just launched a business credit score rating system for the cannabis industry. This first-of-a-kind tool  is intended to solve the liquidity challenges in the cannabis industry by increasing access to and lowering the cost of capital. CTrust has dedicated close to a decade to R&D efforts geared towards creating a comprehensive, sophisticated, and tested risk assessment tool. Increasing financial and operational transparency is likely to boost investor confidence in the cannabis industry, something that has been lacking since the legal industry was conceived.

CTrust’s tool has been bundled to handle Evaluation, Scoring, and Monitoring (ESM) of cannabis businesses in order to offer investors with comprehensive and verifiable data to be used in navigating capital deployment in the industry. CTrust’s leadership comprises a time tested trio who bring on board broad expertise from different industries. 

  • Giadha A. Decarcer is a founding member as well as the CEO of CTrust. He’s a serial entrepreneur and tech entrepreneur and was the previous CEO of the leading data analytics firm in the cannabis industry, New Frontier Data (NFD).
  • Robert Hoban is a founding member as well as the chairman of CTrust. He is an attorney who’s been involved in structuring and drafting several key cannabis rules in the US.
  • Dotan Y. Melech is a founding member as well as the COO of CTrust. He brings onboard several years of experience as a federal bankruptcy trustee. Melech has handled the largest receivership in the history of the  cannabis industry in the U.S. 

In the last, cannabis businesses have struggled to access any form of funding from mainstream lenders due to the federal status of cannabis. When capital is available, it is usually offered at a premium cost and is therefore inaccessible to most businesses. According to Melech, cannabis businesses are facing asset liquidation at an unprecedented rate. 

“Federal prohibition wreaks havoc on cannabis businesses that could thrive in other industries but get sentenced to an early death because Chapter 11 and other federal resources are unavailable. Today cannabis businesses and investors face asset liquidation and full entity dissolution via receiverships at unprecedented rates. In my years as a receiver, I’ve never seen anything like this” Melech said.

CTrust’s ESM service analyzes the operational and financial performance of the company and gives a credit score that’s similar to FICO scores. This should help cannabis businesses to assess the credit risk involved in a transaction and also provide cannabis businesses with cheaper access to funding. 

CTrust is also planning a study: the CTrust’s Credit Rating Study to test the new tool before it is finally launched in the market. Alongside it, the company is raising funds for national and global outreach. With this credit scoring system in place, investors are likely to gain more confidence and offer greater support to promising cannabis businesses. 

 

Lydia K. (Bsc. RN) is a cannabis writer, which, considering where you’re reading this, makes perfect sense. Currently, she is a regular writer for Mace Media. In the past, she has written for MyBud, RX Leaf & Dine Magazine (Canada), CBDShopy (UK) and Cannavalate & Pharmadiol (Australia). She is best known for writing epic news articles and medical pieces. Occasionally, she deviates from news and science and creates humorous articles. And boy doesn't she love that! She equally enjoys ice cream, as should all right-thinking people.

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