Company credit checks allow a person or business to evaluate the creditworthiness of a potential supplier, customer or competitor. You can also perform a credit check on your own company to see its credit rating and to check whether the information on your business is true, accurate and up to date.
Mostly, however, company credit checks are used by businesses to assess the risk of bad debt when they want to sell goods or services on credit.
Checking company credit is not a complicated task and can be done in the comfort of your desk. Just follow these simple steps and you’ll have all the financial information you need about the company you are checking out.
Step 1: Get the company’s information.
If you are checking out your own business, this step is not important. For other businesses, though, a bit of digging might be required to get the information you’ll need for the company credit check. The basic information you need is the business name, location and, of course, the industry they are in. If you’ve at least one of these, you can use it to search the company on the internet and find out the rest.
Step 2: Find a credit agency.
In most countries, credit agencies have the capability to run business credit searches online. Conduct a Google search for “business credit report” followed by the country the company in question is located. From the results, choose an agency that is well known and established in credit reporting.
Step 3. Register with the selected credit agency
To perform a credit search with a credit agency that provides online services, you need to register and set a password. Registration is usually free but you might be required to provide the following information:
- Your company’s name and a contact name.
- Contact information such as phone number, email address, and/ fax.
- Business industry.
- Credit card information.
- A user ID
For credit agencies that do not provide online services, you’ll need to call them directly and request the information you require.
Step 3: Search for the company
Conduct a search of the company you are interested in using the information you gathered in step 1 or provide it over the phone to the credit agency.
In addition to the business name, other information might be requested to narrow the search parameters, so provide it as required. Sometimes several search hits might come up, check the returned business names to see if their location matches that of the business you are looking for.
Step 4: Pay and download the report
usually attract a small fee. You can choose a one-off payment or pay an annual fee if you’ll be conducting multiple searches. Choose the information you need, pay for it and download. For offline credit agencies, you might be required to wait for this information to be sent by email or regular mail.