An Added Layer to the Equifax Business Verification Solution: TIN Match

In 2024, small business startup applications surged to approximately 430,000 per month, 50% higher than pre-pandemic numbers in 2019. For financial lenders and business services providers, an influx of applications provide both an opportunity and a challenge. With so many businesses being created, it can be hard to know which ones are legitimate.  

To help customers with this challenge, Equifax launched a real-time online Business Verification Solution last year that compiles easy-to-read reports with an overview of businesses and their principals so lenders and service providers can make faster, more informed decisions. The report provides a company profile, principal owner overview, a list of businesses potentially associated with the owner, relevant public records, and more.

Based on growing customer feedback, Equifax recently integrated a Taxpayer Identification Number (TIN) Match. With this added layer, vendors can help establish the legitimacy of a business by confirming the status of the Employer Identification Number (EIN) with the IRS. Since employers, sole proprietors, corporations, partnerships, non-profits, trusts and more are required to obtain an EIN to file a business tax return, TIN Match enables users to confirm that a business is active and has a valid EIN prior to forming a relationship with them. By confirming the status of a business’s EIN with the IRS, banks and service providers are able to complete important steps prior to extending services, including:

• Confirming the company’s status with the IRS for reporting purposes

• Determining if the submitted EIN is accurate

• Performing appropriate due diligence prior to forming a business relationship

• Varying the business is acting properly in its operations by reporting to the IRS

One of the key benefits of the solution is the business verification and fraud alert index. However, fraud is just one of the risks of onboarding a new business. It’s also critical to understand the relationship between the business and the owner, particularly in determining if ownership and control sit outside the published organizational structure. Approximately 500,000 small businesses in the US change ownership each year, and 21% of small business owners started a new independent business in 2024. As a result, lenders don’t always have the most up-to-date information at their fingertips.

"Equifax is committed to helping provide actionable insights to stakeholders across the commercial ecosystem that they can use to make smarter decisions, faster," said Alex Whitacre of the Equifax U.S. Information Solutions Commercial Business. "We give business owners, lenders and service providers the ability to make decisions with confidence."

Since launching last year, the Business Verification Solution has leveraged a rigorous validation process that helps confirm the information provided by new businesses matches verified data from several trusted sources. This includes local Secretary of State offices, bankruptcy records, merchant cards and the Office of Foreign Asset Control (OFAC). 

Additionally, Equifax distributes a Small Business Indices monthly report, which helps lenders and businesses track changes in the small business marketplace by providing insights into lending, default, and delinquency trends. To learn more and view the latest reports, check out our Small Business Indices page.

Learn more about how Equifax helps small business lenders make more informed decisions.