Before you enter into any kind of agreement or commercial relationship with another company, with a reliable company check, it makes very good sense to get a clear picture of that organisation’s standing, financial status and credit rating. The well-being of your company relies on the stability and trustworthiness of your clients, customers and suppliers. The relationships you forge with them must be based on sound financial foundations and trust. To make certain that the cornerstones of successful trading are in place, a company check provides you with all the details needed to perform a due diligence assessment on an organisation – in other words a proper investigation prior to signing any contracts.
Potential revelations and genuine reassurance
The global nature of business is just one reason why a company check is of growing importance. When potential customers are in another country or on another continent, it’s simply not practical to arrange face-to-face meetings, so a failsafe independent assessment is a vital service.
But what can a company check reveal? It will look at the age, size and overall financial status of your potential customers, and assess the past, present and future performance and risk data associated with them. The check will also conduct a director search to reveal anything significant that may be hidden in the history of key decision makers. From creditworthiness to County Court Judgements, you’ll gain a clear and useable set of statistics on which to base your next move.
The KYC factor
A company check is designed to identify and establish exactly who you’re going to be trading with. This process is called Know Your Customer [KYC] and it helps businesses like yours avoid serious pitfalls such as late payment, business failure or fraudulent activity. It also helps you to protect that all-important competitive advantage.
Accurate foresight is worth its weight in gold, and a company check will provide you with this on the topics that matter most. By building a clear picture of your customer’s performance, credit score, and any possible weaknesses, you’ll be able to identify and evaluate risk factors and plan ahead to avoid cash flow problems. Now you can pinpoint customers with a good supply of working capital and minimal risk of insolvency, effectively future-proofing your progress.
Clarity on credit
A revealing credit rating check will deliver insights into creditworthiness and payment behaviour. A good credit information company will offer an extensive range of business credit reports that contain key material such as company registration number and address, monthly credit data and risk category, official company data, the highlighting of any CCJs, operational information on staff numbers and SIC codes, and more. Armed with this intelligence you’ll be firmly in control and ready to avoid the risks and damage from late payments or bad debt. Small and medium sized businesses lose around £55 million a year in the UK due to late payment of commercial debts and it’s a growing problem. A company credit check can help keep your enterprise out of these statistics.
Stay free of fraud
Corporate fraudsters have become more and more creative in the contemporary business world. They often pose as apparently legitimate customers or suppliers, and analysis by Graydon has recently revealed that around 4,200 companies in the UK show signs of fraudulent behaviour. So how do you avoid the scams when searching for fresh customers and contacts?
There are some classic warning signs to look out for, such as numerous documented changes to a company in a short space of time. These might include the appointment of a new company director, a change of address where goods are to be supplied, the filing of new accounts or lots of recent credit checks. The golden rule is to know your customer of course, and a company check will ensure that you do, right from the start. From revealing credit details to simply finding the company registration number, a company check can really help in the fight against fraud.
The Director Search
An important component of the company check is the director search, because when you’re looking at a current customer or potential prospect, it’s important to know about the key decision makers behind the business. It’s a relatively simple search to carry out, but the resulting information can prove extremely useful. For example a director search will highlight previous company activity that might include failed business ventures. The details you can expect will include date of birth and service address of relevant directors – where this is available – their appointment date and exact occupation, plus more insightful data such as company resignations per individual and a company credit risk summary.
Simple, safe and secure
Recent government statistics show that 1 in 186 companies went into liquidation in the 12 months up to September 2014. Inevitably many more are concealing instability, financial problems or a murky track record. So when you’re seeking sound new customers or contacts, you want to be confident that their credentials are 100% genuine. To expand and prosper, armed with the knowledge that comes with accurate reporting and data, there is no substitute for the tried and tested company check, conducted by an organisation with the reach and resources to give you the complete picture on enterprises of every kind, locally and globally.