Before a lender will approve a small business for financing they are first going to want to know what is the risk of default. They keep very close watch on the payment performance of their own loan portfolios and the loan portfolios of other lenders. What they are looking for are those items which the higher default rate businesses have in common.
For example, lenders have found that those small businesses using a residential address have a higher risk of default. The same is true for those small businesses who; use a cell phone as their primary business phone, don't have a website, or have a free email service such as gmail, yahoo, hotmail, as their primary business email. They have also found that those businesses that are not listed in the national 411 directory assistance or cannot be found in local SEO searches, have a higher rate of defaults in the loans they have made in the past.
These groupings of items which have shown to increase the likelyhood of a small business to default on a loan is what makes up Lender Compliance. Unfortunately 99% of small business owners don't even know that these Lender Compliance items exist and therefore they never do anything about them.
There are about twenty different Lender Compliance items and lenders are adding to their lists all the time. A recent addition, for some lenders, is the ICANN registration. This shows who owns a website. If it doesn't show that your business owns your business website, then that one Lender Compliance item may be getting you declined.
The Fundability Business Finance & Credit Private Label System insures that your small business clients will know about all Lender Compliance items and exactly what they must do to complete them.
Lender Compliance Items