When dealing with another business entity or service provider, the common questions that must be asked are: “Can this company be trusted” or “How much is known about this company?” Doing business in today’s reality is fraught with potential risks. There are news stories about contractors who secure deposits and then never return to do the job or accounts about companies that defraud investors out of millions of Rands. When intending to establish a relationship with a business, it is important to be certain that they are reputable.
It must be noted that there are instances where you need consent before conducting a business background check. In many cases, if the person or the entity has a genuine business interest, then they will most likely be willing to corporate. Those that object to any form of background checks outright without valid reasons could be a sign that something is off.
Complete business background data
It’s not enough to look only at certain aspects of the company, it is vital to look at the business as a whole. Is the business really what it appears to be? Are there any red flags? Are there bankruptcy filings?
Mitigate commercial credit risk
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 history and payment history? What are their financial payment trends? These are all critical risk indicators you must be aware of.
Days beyond term
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, Experian facilitates deeper, more thorough commercial risk management.
Should you require assistance with performing an entity background check please contact Uphando Forensic & HR Services