Avoid Fraud & Approve More Good Loans

If you're watching the news on an ongoing basis, it seems people just don't learn from the transgressions of others. Unscrupulous individuals are still being caught committing fraud against lenders.

One such fraudster is Westchester, NY businessman Selim Zherka. He was indicted in September for fraudulently obtaining loans from three banks between 2005 and 2008 totaling over $146 million. He used the funds to purchase or refinance apartment complexes in several Northeastern states. His loan applications lied about purchase prices of the properties, down payments, assets, income, tax returns and the status of an outstanding judgment.

How does your company avoid being a victim of fraud?

It starts with a complete credit application.

A thorough credit application will be a fraud deterrent in itself. Fraudsters are more likely to choose an easy credit application path over the thorough credit check. Capture as much information about the business as possible, being sure to capture the website address and any DBAs or past business names. Verify the publicly-available information on the credit application, such as business location via Google and customer feedback via online review sites to determine the legitimacy of the business.

The next step is to pull credit.

The only way to know true debt situation of an applicant is to pull reports from all three business credit bureaus and, when appropriate, consumer bureaus. Each credit bureau has different information. You don’t want to miss that outstanding collection or delinquent charge card because you neglected to pull information from the only credit bureau that had that data.

A more thorough check of your applicant’s creditworthiness, followed by continuous monitoring of the company’s credit will enable you to take on more business. Having done a thorough check of credit, you’ll be able to approve more applications because there are fewer outstanding question marks that might cause the application to be declined. Monitoring enables you to take on a little more risk because you’re keeping a constant eye on the customer.

BCR is the only independent provider of credit data from all three major business credit bureaus. Our proprietary blended reports give you the best each bureau has to offer, giving you the most complete view of a business’ credit situation. Many of our reports come with a free year of credit monitoring, so you can stay advised to any changes in your customer’s credit profile before it becomes a problem.

Check out our complete line of credit reports, scores and business owner reports and contact us to request a live demo.