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How a company credit report can save your business

It sounds like hyperbole doesn’t it? How on earth can a company credit report save a business? Well it’s not! The act of purchasing company credit reports, looking into company accounts and ultimately completing a company check - really can help save a business. Here we’re going to look at how.

But first, what are company credit reports?

Sourced from company check services, company credit reports provide a wealth of company information, including:

     Basic info such as address, nature of business etc
     Company credit limit - a suggested amount of money that the company could be expected to pay back per month
     Company credit score - a rating out of 100 that outlines how safe it is to provide a company credit
     Company financials - company accounts, balance sheet, salaries and dividends, cash flow, capital reserves, ratios
     Personnel - director, shareholder and secretary information

People often wonder if this information should be private, the simple answer to this is yes. In the UK all of this information is already in the public domain. Company check companies simply present this information in a palatable form; company reports.

So how can all this company information help you save your company?

It’s all to do with assessing the people and companies that you’re going to work with. How good a fit are they for your business? Are they in financial trouble? Are they late filing annual accounts? Have the directors of the company been involved in failed businesses in the past? What’s their company credit rating?

A company credit report can help you answer all of these questions, what’s more, most company check companies also provide company director reports too - so you can see an even bigger picture and fully assess the risk factor of getting involved in a company.

Here are some scenarios where a company credit report could help you:

Accepting a large order
If a business is about to place a large order with you and is expecting to make payment once you have delivered, you simply must complete a company check to ensure they they can pay you when your service has been provided.

Placing a large order
If you’re about to place a large order, and so part with a significant amount of money, you should look into the current financial situation of the company - will they be able to provide the service once you have paid for it? If you suspect not, requesting credit is then an option.

Going into partnership
If you’re about to enter into a business partnership with another company you should do your due diligence to find out of this is the type of company that you want to be associated with. After all, you’re only as strong as your weakest link - and if another business has, or is getting a bad reputation, this does not look good on you.

If you just wander into business relationships, whether as a customer, provider, or partner without doing any backgrounds check, you’re asking for trouble. So be safe and protect your business with company credit reports.
How a company credit report can save your business How a company credit report can save your business Reviewed by Kapil Kumar on 2:48 PM Rating: 5