What Services Does Cobalt Intelligence offer?

Cobalt Intelligence stands out by offering a suite of API-driven services designed to streamline business verification processes, mitigate fraud risks, and enhance decision-making. This blog post delves into the comprehensive services provided by Cobalt Intelligence, highlighting how these offerings revolutionize traditional lending operations.

Core Service: Secretary of State (SOS) API

At the heart of Cobalt Intelligence's offerings is the Secretary of State (SOS) API, a robust tool that provides real-time access to business entity data across all 50 states and the District of Columbia. Unlike traditional verification methods that rely on outdated or cached information, Cobalt's API connects directly to state databases, ensuring users receive the most current and accurate data available.

Key Features and Benefits:

Real-Time Data Retrieval 

By connecting directly to SOS databases, the API can verify businesses registered as recently as an hour ago, significantly reducing the risk of funding non-existent entities. This real-time access ensures that lenders are always working with the most up-to-date information. 

• Real-time data retrieval is crucial in the fast-paced lending environment where business information can change rapidly. Having access to the most current data minimizes the risk of making decisions based on outdated information, thus improving accuracy and reducing potential losses.

Primary Source Documentation

Cobalt’s API provides screenshots of the actual state records, complete with timestamps and watermarks. This feature creates a verifiable audit trail, essential for compliance and due diligence purposes. 

• Primary source documentation offers an unparalleled level of verification, assuring lenders that the information they are using is directly from the official source. The added timestamps and watermarks further validate the authenticity and reliability of the data, bolstering compliance efforts.

Comprehensive Business Details

The API delivers critical business details such as entity name, status, filing date, business start date, entity type classification, registered agent information, officer and owner details, and historical filings and amendments. This wealth of information enables a thorough assessment of the business entity. 

• Access to comprehensive business details ensures that lenders have a complete picture of the entity they are evaluating. This holistic view aids in identifying potential risks and making well-informed lending decisions.

Intelligent Matching Technology

Cobalt employs sophisticated algorithms to handle naming inconsistencies and improve match accuracy. The system includes confidence scoring to help users resolve potential discrepancies, ensuring the correct business entity is identified even when names don't exactly match. 

• Naming inconsistencies are a common challenge in business verification. Cobalt's intelligent matching technology addresses this issue by employing algorithms that can identify the correct business entity despite slight variations in the provided information, thereby reducing manual effort and improving accuracy.

Additional Verification Services: Expanding the Risk Assessment Toolkit

Beyond the SOS API, Cobalt Intelligence offers additional services that enhance the risk assessment process, providing a multilayered approach to fraud prevention and due diligence.

1. TIN Verification API

The TIN (Taxpayer Identification Number) Verification API confirms whether the provided business tax ID numbers match the registered information with the IRS. This service adds an extra layer of security, helping users verify business legitimacy and prevent identity theft. 

TIN verification is a critical step in preventing fraud, as it ensures that the tax ID number provided by the business matches the information registered with the IRS. This validation helps lenders avoid dealing with illegitimate entities.

2. UCC Filing Data

Cobalt’s API allows access to Uniform Commercial Code (UCC) filings, enabling lenders to identify existing liens and financial obligations. This service provides deeper insight into a business's financial status, helping lenders assess the risk associated with extending credit. 

Access to UCC filings offers valuable insights into a business's financial obligations and existing liens. This information is essential for assessing the risk associated with lending and making informed decisions about credit extension.

3. Contractor License Verification

Designed to validate contractor licenses at the state level, this service ensures that businesses are operating with the required credentials. It is particularly useful for lenders in the construction industry, providing an added layer of security and compliance. 

Contractor license verification is crucial for lenders in the construction industry, as it ensures that the businesses they are funding are operating legally and have the necessary credentials. This reduces the risk of funding unlicensed or non-compliant contractors.

Streamlined Integration and Implementation

Cobalt Intelligence emphasizes ease of integration, ensuring that lenders can quickly implement these services into their existing systems. The typical implementation can be completed in less than a week, providing a rapid return on investment.

Key Integration Features

• REST API: Cobalt uses REST APIs with clear documentation, simplifying the integration process for developers.
• Flexible Options: Cobalt provides flexible implementation options, including callback URLs for asynchronous processing of longer requests.
• Transparent Pricing: Cobalt offers transparent, usage-based pricing with no hidden fees. Pricing models include monthly subscription options, volume-based pricing tiers, and annual discounts. Streamlined integration ensures that lenders can quickly and easily incorporate Cobalt's services into their existing workflows, minimizing disruption and maximizing efficiency. Transparent pricing models further enhance the value proposition by providing predictable costs and scalability.

Success Stories: Real-World Impact

The effectiveness of Cobalt Intelligence's services is evident in the success stories of its clients, who have experienced significant improvements in efficiency, accuracy, and fraud prevention.

1. 1West: Automating Verification and Reducing Fraud

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 OneWest, noted that "Cobalt helps us verify the file data that the customer provides on applications. It helps reduce fraud for our lending partners and ensures we have the highest chances of obtaining approvals".

• Key Outcomes:
  
  • Automated Verification: Eliminated manual verification processes, freeing up bandwidth for their processing team.
  • Improved Accuracy: Ensured accurate business start dates, leading to more competitive offers for customers.
  • Fraud Reduction: Verified application data against official state records, significantly reducing fraud risk.

2. General Merchant Funding: Enhancing Efficiency and Customer Experience

General Merchant Funding, a company with 14+ years of experience in the alternative business finance industry, integrated Cobalt Intelligence to automate their system, increase efficiency, and speed up the process. Craig Clark from General Merchant Funding, notes that Cobalt's integration has transformed their underwriting process.

• Key Outcomes:
  
  • Automated Secretary of State Verification: Automates what was once a manual, state-by-state verification process, saving minutes per application.
  • Real-Time EIN Verification: Ensures they are dealing with a verifiable business from the start, preventing wasted effort on problematic applications.
  • Streamlined Judicial Searches: Seamlessly integrates court case verification, which was previously a lengthy manual process.

3. Bectran: Streamlining Credit Approvals

Bectran, a leading credit and accounts receivable management platform, integrated with Cobalt Intelligence to enhance their fraud prevention capabilities. Louis Ifeguni, Bectran CEO, noted that the collaboration equips credit managers with real-time SOS data at the moment of application submission, resulting in tighter fraud security measures and faster credit approvals.

• Key Outcomes:
  
  • Automated Data Retrieval: Automatically pulls SOS data alongside credit applications.
  • Application Scoring: Scores applications based on verification data.
  • Enhanced Audit Trail: Provides screenshots and verification timestamps for audit trails.
  • Automated Decline: Identifies inactive businesses for automatic decline.

Conclusion: Modern Lending with Cobalt Intelligence

Cobalt Intelligence offers a comprehensive suite of services designed to modernize business verification for alternative lenders. By providing real-time data, comprehensive information, and intelligent matching algorithms, Cobalt's APIs help reduce fraud, improve compliance, and streamline operations. The success stories of 1West, General Merchant Funding, and Bectran demonstrate the tangible benefits of integrating Cobalt Intelligence into lending workflows.

Speed and accuracy are paramount. Cobalt Intelligence empowers alternative business lenders to make faster, more informed decisions, reducing risk and enhancing the customer experience. 

Cobalt Intelligence is creating a more transparent, efficient, and equitable lending ecosystem.

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