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A finance company streamlined and automated their verification and underwriting processes to support rapid growth without increasing risk.
A fast-growing company that provides working capital solutions to small and mid-sized businesses nationwide. They provide loans to multiple industries including retail, logistics, and small manufacturers. The company has been handling a large number of loan applications each year, with most customers applying online.
As the company experienced rapid growth in the last five years, their infrastructure struggled to keep pace. Its verification and underwriting workflows still relied heavily on manual processes, which limited their ability to scale efficiently.
Despite the company rapidly, their teams struggled to keep up. Their underwriters spent a disproportionate amount of time on manual data entry and document handling instead of focusing on credit analysis and value-added decisioning.
Many of their borrowers submitted incomplete or incorrect tax documents, which caused delays and extra work. On top of that, getting tax transcripts from the IRS took several days which further slowed down their loan approval process.
As the company grew, so did their compliance requirements. They also saw a rise in synthetic and mule businesses attempting to access credit, and their manual verification process was unable to identify the risk early in the application process.
By implementing Compliancely into their workflow, the company was able to replace tax documents uploaded by borrowers with consent-based, direct IRS tax transcript retrieval. This ensured that only verified financial data flowed directly into their risk models and removed the need for reworks and reduced delays.
The company integrated Compliancely’s API into their Loan Origination System to automate EINs, legal business names, tax filing history, and entity status verification. These real-time automated checks strengthened compliance while improving their approval rates.
The company embedded regulatory controls directly into their onboarding & underwriting process by automatically screening applicants and beneficial owners against OFAC, PEP, and adverse media lists. This enabled continuous compliance and fraud prevention without slowing down their borrower’s experience.
Average decision time was reduced manual work through automated verification and underwriting
Application completion rate increased from 68% to 83% as faster decisions reduced borrower drop-off.
Automation enabled the company to increase lending volume and onboard Verified applicants faster.
IRS tax transcripts play a very important role in credit risk verification and lending. In simple terms, these transcripts are essentially IRS-issued summaries of a taxpayer’s return, account, wage and income information, or non-filing status having the data in these transcripts can help you verify a borrower’s income, filing history, and whether or not there are any taxes owed.
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