Factoring & Equipment Financing

POST /searches
GET /businesses/{business_id}/applications

// Submit business search
response = POST /searches with business details

// Check application velocity
applications = GET /businesses/{business_id}/applications

// Count recent applications
applications_last_7_days = count(applications where created_at >= today - 7 days)
applications_last_30_days = count(applications where created_at >= today - 30 days)

// Evaluate velocity flags
IF applications_last_7_days >= 4:
    flag = "RED"
    reason = "High application velocity - 4+ applications in 7 days"
    
ELSE IF applications_last_30_days >= 4:
    flag = "YELLOW"
    reason = "Elevated application velocity - 4+ applications in 30 days"

// Check fraud consortium (BFC entry appears in watchlist_hits for member organizations only)
bfc = FIND entry IN response.watchlist_hits WHERE entry.code == "BFC"
IF bfc EXISTS AND bfc.count > 0:
    flag = "RED"
    reason = "Business or individual in Baselayer Fraud Consortium"

// Combine with third-party fraud screening
IF fraud_screening_provider.risk_score > threshold:
    flag = "RED"
    reason = "Failed fraud screening"

POST /web_presence_requests

// Extract industry prediction from /web_presence_requests response
industry = response.industry_prediction

// Check for prohibited industries
IF industry.keywords CONTAINS ANY prohibited_keyword:
    flag = "RED"
    reason = "Prohibited industry keyword detected"

// Check prohibited NAICS codes with confidence threshold
IF industry.code IN prohibited_naics_list:
    IF industry.accuracy >= 0.75:
        flag = "RED"
        reason = "Prohibited industry with high confidence"
    ELSE:
        flag = "YELLOW"
        reason = "Potential prohibited industry, needs review"

POST /searches

// Extract match signals from /searches response
business_id = response.business.id
name_match = response.business_name_match
address_match = response.business_address_match  
tin_matched = response.tin_matched
registrations = response.business.registrations
watchlist_hits = response.watchlist_hits
months_in_business = response.business.months_in_business
addresses = response.business.addresses

// Check Baselayer match

IF business_id == NULL:
    flag = "RED"
    reason = "No business match" // skip all other steps

// Check name and address matching
name_address_approved = FALSE

IF name_match == "EXACT" AND address_match IN ["EXACT", "CITY", "STATE"]:
    name_address_approved = TRUE
    
ELSE IF name_match == "SIMILAR" AND address_match == "EXACT":
    name_address_approved = TRUE

IF NOT name_address_approved:
    flag = "RED"
    reason = "Weak name/address match"

// Verify TIN
IF tin_matched == NULL:
    # IRS outage - handle per policy
    # See Guide: IRS Outage Handling for detailed guidance
    flag = "YELLOW"
    reason = "TIN verification unavailable (IRS outage)"
    
ELSE IF tin_matched == FALSE:
    flag = "RED"
    reason = "TIN does not match business name"

// Check registrations
domestic_active = FALSE
FOR EACH registration IN registrations:
    IF registration.registration_type == "domestic" AND registration.status == "active":
        domestic_active = TRUE
        domestic_state = registration.state

IF NOT domestic_active:
    flag = "RED"
    reason = "No active domestic registration"

// If business operates in different state, verify foreign registration
// Operating state is usually the one from the application address
IF operating_state != domestic_state:
    foreign_active = FALSE
    FOR EACH registration IN registrations:
        IF registration.registration_type == "foreign" AND registration.state == operating_state AND registration.status == "active":
            foreign_active = TRUE
    
    IF NOT foreign_active:
        flag = "YELLOW"
        reason = "No active foreign registration in operating state"

// Check watchlists
IF ANY entry IN watchlist_hits WHERE entry.count > 0 AND entry.code != "IEO":
    flag = "RED"
    reason = "Positive sanctions or watchlist match"

// Optional: Check business age (common requirement)
IF months_in_business < 12:
    flag = "YELLOW"
    reason = "Business less than 12 months old - higher risk"

// Optional: Check if equipment delivery address is commercial
submitted_address = application.equipment_delivery_address

FOR EACH address IN addresses:
    IF address.matches(submitted_address):
        // Check if address is residential
        IF address.rdi == "Residential":
            flag = "YELLOW"
            reason = "Equipment delivery address is residential"
        
        // Flag post office boxes or general delivery (cannot deliver equipment)
        IF address.delivery_type IN ["POST_OFFICE", "GENERAL_DELIVERY"]:
            flag = "RED"
            reason = "Equipment cannot be delivered to PO Box or general delivery"

POST /lien_searches
POST /docket_searches

// Submit lien search using business_id from Step 4
lien_response = POST /lien_searches with business_id
// wait for LiensSearch.completed, then GET /lien_searches/{id}

// Extract lien details
lien_details = lien_response.filings

// Evaluate lien risk
FOR EACH lien IN lien_details:
    IF lien.status == "Active":
        // Check for tax liens (highest priority - red flag)
        IF lien.filing_type.startswith("tax."):
            flag = "RED"
            reason = "Active tax lien found"
        ELSE:
            // Any other active lien is a yellow flag
            flag = "YELLOW"
            reason = "Active lien found"

// Submit docket search using business_id from Step 4
docket_response = POST /docket_searches with business_id
// wait for DocketSearch.completed, then GET /docket_searches/{id}

// Evaluate litigation and bankruptcy risk
medium_risk_count = 0

FOR EACH docket IN docket_response.dockets:
    // Check for high-risk cases with exact match
    IF docket.risk_level == "high" AND docket.match_level == "EXACT":
        flag = "RED"
        reason = "High-risk case with exact match (bankruptcy or significant litigation)"
    
    // Count medium-risk cases
    IF docket.risk_level == "medium":
        medium_risk_count = medium_risk_count + 1

// Flag if multiple medium-risk cases
IF medium_risk_count > 2:
    flag = "YELLOW"
    reason = "Multiple medium-risk litigation cases found"

POST /portfolio/items

// After financing is approved and funded
IF financing_status == "FUNDED":
    // Add business to portfolio monitoring
    portfolio_item = POST /portfolio/items {
        "business_search_id": business_search_id,
        "group_id": group_id  // Optional: assign to risk-based group
    }
    
    // Monitoring begins automatically based on portfolio policy