Separate Reliable Merchants from Risky Ones in POS Financing with Automated Professional License Verify

As a POS financing company, offering swimming pool loans through qualified merchants can be an attractive opportunity, especially during the summer months. However, the challenge lies in onboarding merchants who are in good standing and ensuring that those already in your network continue to represent your product effectively. Establishing a professional license monitoring and verification program can mitigate this risk and ensure the success of your financing operations.

The Importance of Professional License Verification

Professional License Verification (PLV) is essential for managing the risk of onboarding, contracting, and maintaining long-term relationships with qualified professionals. In trades where competence and trust are critical third-party verification is vital. This process ensures that contractors are qualified, compliant, and capable of completing their work to the highest standards.

Consider the case of JE Clear Pools LLC, a pool contractor whose license was revoked after multiple complaints and investigations. Customers like Chris Tontini¹ were left with incomplete pools and financial losses, despite having paid significant amounts upfront. The Florida Department of Business and Professional Regulation eventually revoked JE Clear Pools' license, ordered fines, and mandated restitution for the affected homeowners. This example highlights the severe consequences of not verifying and monitoring licenses.

Three Key Business Challenges Addressed by Professional License Verification

1. Verification is Complex: Verifying licenses is not a straightforward task. Different states have different licensing boards and requirements, making the process even more complicated. Ensuring that data is accurate and up-to-date across various jurisdictions is essential for effective risk management.  

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3. Data Freshness is Critical: Relying on third-party databases that are updated only once or twice a year means working with outdated information. Real-time data access is crucial to prevent working with expired or revoked licenses. For example, JE Clear Pools had no new permits since February, highlighting the need for up-to-date data to avoid potential risks.  In most recent example below, two out of the three "JE CLEAR POOLS LLC" shows a current status, while only one JE CLEAR POOLS LLC shows "Revoked". 

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5. Source: https://www.myfloridalicense.com/ - "Using JE CLEAR POOL LLC"
6. Ongoing Monitoring is a Must: Continuous compliance is vital to ensure licenses remain valid and in good standing. Automated systems can provide timely alerts when a license status changes, ensuring ongoing compliance and reducing the manual effort required for regular checks.
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Benefits of Implementing Professional License Verification and Monitoring

1. Enhanced Consumer Trust: Consumers feel secure knowing they are dealing with verified and licensed contractors. This trust is crucial for maintaining a positive reputation and fostering long-term relationships.

2. Reduced Financial Risk: By minimizing the potential losses from working with unreliable contractors, businesses can protect their investments and ensure smoother project completions.

3. Streamlined Processes: Automation reduces the time and effort required for manual verifications, allowing businesses to focus on growth and customer satisfaction rather than administrative tasks.

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Automated Professional License Verification

Adopting a professional license verification program is essential for POS financing companies to expand into new markets, reduce business risk and protect consumers. By ensuring that contractors are reliable and licensed, companies can mitigate risks and foster a secure, beneficial financing ecosystem.

If you’re looking to establish or upgrade your existing PLV program with automation or want to learn more about integrating license verification into your business, let’s talk. Our verification experts are ready to help you understand how automated PLV can strengthen your business and streamline your verification processes.

¹. Pool Contractor who left homeowners with unfinished pools has license revoked.