When running a business, new or old, it pays to do a company check on any business that you’re entering into a relationship with. Company credit reports are a key tool to doing this successfully as they can give you Companies House information (Companies House are the UK’s registrar of companies) as well as company credit ratings – a score that assesses the creditworthiness of the company.
Here we’re going to look at the benefits of completing a company credit check and the different scenarios in which company checks can help you.
When you’re about to place a large order
Before you part with a significant amount of cash it’s advisable to do a company credit check on the company that you’re about to give your money to. Commercial credit reports can provide you with company accounts information and a company credit rating – giving you an idea on the likelihood of the company delivering what they promise.
When you’re considering accepting a large order
In exactly the same way credit reports can come in handy when you’re on the other end of the transaction. Before spending time and money delivering a service or product you should do your due diligence to ensure that you will be paid for it. Once again, company accounts and the company credit rating are key when evaluating this.
When going into partnership with another business
All business relationships should come under scrutiny, even those that would initially appear mutually beneficial. Complete a company credit check on any company that you’re going to be aligning with to protect your reputation.
When partnering with an individual
It’s not only companies that you can look into, you can also do background checks on directors too with uk company director reports. These give you the name of every company that the person has been a director of – giving you an idea of their current and previous activity. This helps you make an informed decision on whether you should work with this person or not.
That’s four scenarios where a company credit check can help you make informed business decisions. We hope you’ve found this useful.