When researching the creditworthiness of a prospective business associate or customer, it’s imperative that your evaluation and due diligence be thorough. For some, the time and resources required to gather this type of information can seem prohibitive. Even worse, you may worry that the delay caused by difficulties obtaining this information will result in a lost deal or opportunity. It’s not enough to look only at certain aspects of the company; it’s vital to look at the business as a whole. Is the business really what it appears to be? Do public records turn up any red flags? Are there bankruptcy filings?
Looking at a business’s credit history tells you a lot about the business and the level of risk they bring to your credit portfolio. What is their business credit score and payment history? What are their financial payment trends? These are all critical risk indicators you must be aware of.
Understanding days beyond term helps reveal how prompt a business is in paying its bills. What is its past payment history? Will it be able to make payments when it says it will? What kind of terms should you extend it?
As a business owner or credit manager, performing a business background check is one of the best precautions you can take. By combining credit history, fraud indicators and other important business background information into a single report, we will facilitate deeper, more thorough commercial risk management.