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CTrust’s Approach To Navigating Cannabis Credit Scoring, Partnerships, and Compliance: Interview With Dotan Y. Melech




In an era where the cannabis industry is rapidly expanding, the intersection of banking and cannabis has become a critical focal point. The unique challenges faced by cannabis businesses in accessing financial products require innovative solutions, and one company leading the charge is CTrust. Recently, I had the privilege of chatting with Dotan Y. Melech, the CEO of CTrust, to delve into the intricacies of their credit scoring system tailored specifically for the cannabis sector.

CTrust has recently joined forces with Green Check, a partnership aimed at simplifying financial access for cannabis businesses. This collaboration addresses the unique challenges stemming from the federal illegality of cannabis, creating a valuable data repository to streamline the financial services process. In this interview, Melech sheds light on the challenges and opportunities that this diversity presents for CTrust.

Meet Melech.

Can you elaborate on the specific features behind CTrust's credit scoring system for cannabis businesses? How does it differentiate itself from traditional credit scoring models?

CTrust uses a proprietary formula and rigorous approach to evaluation, scoring, and monitoring. We evaluate three components of each company we score: assets, structure and character (ASC), both qualitatively and quantitatively using data aggregated from reliable sources. Within the ASC model, we closely evaluate:

  • Operations & Processes
  • Accounting & Financials
  • Products & Services
  • Management & Culture
  • Branding & Public Relations

Through the evaluation process, CTrust generates a quantitative investment risk indicator known as the Cannabis Trust Score (CTS). What makes CTrust different from traditional credit scoring is we look beyond just financials. Traditional scoring focuses almost exclusively on payment and debt history, basing their models on past payment behavior. CTrust looks beyond past payment behavior to include company assets, structure and character which all contribute to the risk profile. This provides a much more accurate reflection of the risk factor any company presents.

In what ways do you believe the collaboration with Green Check will address the unique challenges that cannabis businesses face when seeking financial products, and how does CTrust contribute to simplifying this process?

Because cannabis remains federally illegal, cannabis businesses operating in legal state markets have numerous financial services hurdles to overcome that other businesses don’t face. Green Check has worked diligently to help these businesses align with financial institutions that can support their needs via its marketplace where companies can connect on business opportunities. Each interaction between these companies adds to a valuable data repository, that CTrust, as an independent third-party, uses to provide value to all groups participating in the marketplace.

CTrust delivers unique credit scoring and monitoring that simplifies the process and reduces risk for both cannabis and financial companies looking to engage in business opportunities by providing a valuable and trusted third party to properly evaluate risks and opportunities. These are the fundamental elements needed to bring meaningful, transpar ent lending to the cannabis industry going forward.

Considering the evolving legal landscape surrounding cannabis, how does CTrust adapt its credit scoring and monitoring to ensure compliance and accuracy in different jurisdictions? What challenges and opportunities does this diversity present for your company?

CTrust’s job is making sure our score ensures accuracy, regardless of which state or market the company being scored operates in. To do this, we monitor and score the states/markets in parallel and factor this into any company score to make sure that a score of 700 in one market reflects the same risk in any other. As part of the market scoring process, we consider a number of factors, including whether it’s a limited license or unlimited license state, taxation, pricing, market type (medical or adult-use.), etc. Factoring market conditions into the company score creates accuracy and fairness for each company.

It was a great pleasure to have this conversation with Dotan Y. Melech, the CEO of CTrust. Readers who wish to learn more about how Green Check is transforming the cannabis industry in terms of financial solutions are invited to check their website.

Full details about the partnership between Green Check and CTust are available in the press release:



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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