The Secretary of State API can provide accurate, real-time business data directly from the source, which can improve matching rates and reduce manual verification efforts.
Here's how:
1. Data Quality and Verification:
- Authoritative Source: The API pulls data directly from Secretary of State websites, ensuring it's the most up-to-date and accurate information available. This eliminates the reliance on potentially outdated or inaccurate credit bureau data.
- Legal Business Name Verification: The API returns the official legal business name registered with the state, enabling you to verify the information provided by customers. This addresses the concern of legal business name verification, a key pain point in your list.
- Multiple Data Points: The API provides a range of data points, including business status, filing date, registered agent information, and assumed business names (DBAs), when available. This rich data set can be used to improve matching logic and get a more complete picture of the business.
2. Process Flow Optimization:
- Improved Matching Logic: The API employs confidence scoring and fuzzy matching to address variations in business names and potential user input errors. This can significantly improve match rates compared to credit bureaus, which might have stricter matching criteria.
- Additional Identifiers: The API can utilize the Secretary of State ID or charter number for searches, providing a more reliable identifier than EINs.
- Automated State Registration Checks: The API streamlines the process of checking business registration status across multiple states. It replaces manual searches on individual Secretary of State websites, saving time and reducing errors.
3. Addressing Specific Pain Points:
- The low EIN match rate can be bypassed by using the Secretary of State ID or charter number for searches through the API.
- Address mismatches are mitigated as the API prioritizes matching businesses with verified addresses from the Secretary of State records.
- The API helps avoid missed opportunities by providing a comprehensive and reliable data source for business verification, leading to quicker and more confident lending decisions.
Value Proposition for Alternative Lenders:
The API's real-time data, comprehensive coverage, and sophisticated matching logic directly address the pain points of alternative lenders struggling with credit bureau data. It helps:
- Reduce Risk: By verifying legal business names and checking registration status, lenders can mitigate fraud and make more informed lending decisions.
- Increase Revenue: Improved match rates mean fewer missed opportunities and faster loan processing times.
- Optimize Efficiency: Automating state registration checks eliminates manual processes, freeing up staff for more valuable tasks.
Overall, the Secretary of State API presents a strong value proposition for alternative lenders, offering a solution to the limitations of credit bureau data and enabling them to operate more efficiently and effectively.