A core component of this verification is achieving high match rates when querying Secretary of State databases. Cobalt Intelligence's Secretary of State API offers a powerful solution, ensuring real-time data access and intelligent matching algorithms to maximize business match rates.
The Importance of High Business Match Rates
Inaccurate or outdated business information can lead to increased operational costs, higher fraud risk, and missed business opportunities. Manual verification is time-consuming and prone to error. Real-time data ensures that lenders are making decisions based on the most current information, especially crucial for recently registered businesses or entities with recent status changes.
Kunal, CEO of 1West, emphasizes the importance of accurate business start dates for reducing fraud and increasing approval rates. Shane, CTO of 1West, highlights the time savings achieved by automating Secretary of State record checks.
Key Features of Cobalt Intelligence's Secretary of State API for Maximizing Match Rates
Cobalt Intelligence's API is designed to deliver unmatched speed and accuracy in business verification. Here's how it maximizes business match rates:
- Real-Time Data Access
Cobalt connects directly to Secretary of State databases in real-time, ensuring access to the most current entity status, officer data, and filings. This eliminates the risk of relying on outdated information from traditional database providers.
- Comprehensive Multi-State Verification
With a single API call, lenders can verify a business across all 50 states and D.C. simultaneously. Cobalt's API boasts a 98% hit rate on business entity searches.
- Intelligent Matching Algorithms
Cobalt's API employs advanced confidence scoring to effectively match business names, even with variations. The system offers possible alternatives when there are multiple potential matches and utilizes AI-enhanced matching algorithms (in beta) to handle variations in business names.
- Primary Source Documents and Screenshots
Obtain actual screenshots from state records as they appear on official sites. Each screenshot includes a timestamp and watermark for audit trail purposes, creating a verifiable audit trail for compliance and due diligence.
- Comprehensive Business Information
Access detailed entity information, including entity status, filing dates, historical changes, officer data, and registered agent details. The API also provides access to assumed business names (DBA) information and UCC filing data in select states.
- Flexibility and Customization
Cobalt Intelligence's API offers flexible integration options to suit various workflows. A standard integration is available via a simple REST API, and advanced options include a cache-first approach for faster response times and callback URL functionality for asynchronous processing of longer requests.
Addressing Common Challenges in Business Name Matching
- Name Variations and Typos
The API's intelligent matching algorithms and confidence scoring help handle name variations and typos. A confidence score of 0.8+ is recommended to handle name variations or typos.
- Entity Type Designations
The system strips entity type designations (LLC, Inc.) to improve matching accuracy.
- Multiple Potential Matches
The API provides alternative results ranked by confidence level, prioritizing active businesses.
- DBA/Fictitious Names
The API identifies the actual legal entity behind trade names.
Practical Implementation and Optimization
- Confidence Levels
Use confidence scores to gauge the reliability of matches. A score above 0.7 indicates a strong match. For manual review, consider scores between 0.25 and 0.9.
- Data Normalization
Be aware that different states have varying data formats, requiring normalization for consistent results.
- Zip Code Filtering
Use zip code filtering to narrow results, especially for common business names.
- Caching
Use the live_data: false parameter to check the cached database first for faster response times. If no match is found, make a second call with live_data: true.
- Callback URLs
Implement callback URLs for asynchronous processing of longer requests, preventing timeouts.
- Rate Limiting
Adhere to rate limits (2 concurrent requests per state, 5 total concurrent requests) to prevent throttling.
Case Study: 1West's Success with Cobalt Intelligence
1West, a leading small business lending marketplace, integrated Cobalt Intelligence's Secretary of State API directly into their Automated Business Lending Engine (ABLE). Kunal, CEO of 1West, explains that Cobalt helps verify file data, reduce fraud, and increase approval chances. Shane, CTO of 1West, notes the significant time savings from automating business start date lookups.
Flexible Pricing and Integration
Cobalt Intelligence offers flexible pricing models with monthly subscription options, volume-based pricing tiers, and annual discounts. There are no hidden fees or long-term commitments. The API is straightforward to implement, with lenders typically fully integrated within days. Cobalt also provides detailed documentation, integration support, and dedicated customer support.
Cobalt Intelligence's Secretary of State API provides real-time business data to help lenders make faster, more accurate, and less risky decisions.
Contact Cobalt Intelligence today to learn how the Secretary of State API can enhance your alternative lending operations.
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