LoanPro's Smart Verify includes powerful tools designed to help B2B lenders perform a risk analysis and a Know Your Business (KYB) evaluation. Depending on your business needs, you'll choose what information you'd like to pull. This can include: identity verification, KYB score, risk score, watchlist hits, litigation, and bankruptcy. Additionally, you can also search, verify, and monitor any liens held by the business. You'll work with your LoanPro contact to customize a process—either manual or automatic—that works for you. This article will outline your options and tell you more about what each search or score provides. 

Business search

Business search is a feature that allows you to pull information about a business using their name and address. You can customize this search by choosing data points from a list of available options and then define a process for pulling that data. For example, you might decide that a search should automatically be performed each time a new customer is created. Or, if you prefer to work on a case-by-case basis, you can use a checklist item to trigger the search only when you need it. To begin using business search, reach out to your LoanPro contact to begin the process.

Returned information

When your process is live, the information will be delivered directly into your LoanPro tenant. We will help you create custom fields that will contain the information you selected. The following data is found within the customer profile:

• Business search ID

• KYB score

• Risk score

• KYB address

• Watchlist hits

• Months in business

• Entity types

• Docket count

To view these fields, open the loan then select Customer > Contact & Personal Information > Additional Information. Or, you can open the customer's profile directly by navigating to Customer Manager > Select customer > Contact & Personal Information > Additional Information. 

If the search is conducted on a recurring basis, the fields here will automatically be updated. 

Scores

Risk and KYB scores and ratings are calculated metrics designed to automate risk decisioning. Each score is outlined below with an explanation of how the calculation is determined. A higher score is better and an “A” rating is best (a 100A score means a business is likely a low credit risk). 

Lien filing and verification

If your business borrowers secure their accounts with collateral, you likely file a lien to publicly record your claim. But manual filing liens adds to your origination process, taking time from borrowers and agents alike. That's why LoanPro has built out a streamlined lien filing solution that can fit seamlessly into your origination process.

Similarly, if a borrower has already used that asset as collateral on another credit product, then that lender's claim might supersede yours in the event of a bankruptcy, leaving you with no recourse. LoanPro's Smart Verify tool helps prevent this by searching for pre-existing liens against a business, as well as notifying you of new liens that might signal financial difficulties. Detecting these liens will not only help you make informed choices when extending credit, but can also help you know when to extend hardship programs or other options to your existing customers.

This article will explain how to sign up for and use both lien filing and lien monitoring.

Sign up and configuration

Before using either tool, you'll need have it configured in LMS. Reach out to your normal LoanPro contact, and they’ll be able to discuss pricing and get you started with signup.

These processes can be customized to suit your needs and business logic, using LoanPro tools like Agent Walkthroughs, Quick Actions, or the Automation Engine to streamline or fully automate the check.

Lien filing

LoanPro can automatically file liens against businesses. Your filing process can be tailored to suit your specific needs and use case, but the process will go something like this:

1. An agent or automation triggers a line filing. If you’re automating the process with ongoing monitoring, the Automation Engine or Quick Actions can be configured to automatically file a lien when you reach the appropriate stage in your underwriting and decisioning process. If you prefer to have an agent manually kick of the process, you can streamline it down to just a few clicks through Agent Walkthroughs or Quick Actions that guide agents through the UI.
2. LoanPro files the lien. Using the customer’s information, LoanPro will find the necessary business IDs and file a lien against them.
3. The borrower is updated in LoanPro. LoanPro will note that you filed a lien in a custom field for the Lien Filing ID. It will then continue pooling the most up to date information on the status of the lien, automatically updating the borrower.
4. LoanPro performs any other automations in your process. Depending on your business logic, you may have other steps you’d like to perform after the lien is filed, continuing your origination process.

All in all, the only manual action you'll need is in the first step—and even that can be handled through automation.

Lien search and monitoring

Just like with lien filing, the details here will vary depending on your configuration preferences, but the process will go something like this:

1. An agent or automation triggers a search. If you’re automating the process with ongoing monitoring, the Automation Engine or Quick Actions can be configured to search for liens accounts on a regular cadence. (You can even specify that accounts in a certain group, like those with collateral saved, should be checked more often.) You can streamline ad hoc searches with Agent Walkthroughs or Quick Actions to guide agents through the UI.
2. LoanPro searches for liens. Regardless of what triggered the verification, LoanPro will run a search for UCC liens, using business IDs to search through lien databases. The results of that search (either a positive match or no) are automatically sent back to LMS.
3. The borrower is updated in LoanPro. After the search, a note will be added to the customer saying whether a lien was found. If there was a positive match, it will be saved as a PDF in the account's documents page.
4. LoanPro performs any other automations connected to the search. LoanPro can then carry out any other steps you’d like to perform, like moving the account along in your origination process or notifying an agent.

By leveraging LoanPro's lien search and tools, you can reduce credit risk while maintaining operational efficiency.