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Performing a credit check on a potential business partner is part of performing due diligence. If you don’t perform a credit check as part of your overall background check then you are potentially putting yourself at risk, and here’s why:

 

Avoiding unexpected issues

Your potential business partners company credit profile could be one of the factors that companies use to make decisions about you both. It can determine whether your loan application is successful, how much credit to offer your business or how much interest you’ll be charged. That’s why it’s important to be aware of what’s on your potential business partners company credit report so you can monitor it for accuracy and changes.

 

Knowing your business partner

A company credit report is used to present a current and objective picture of how a business manages its financial obligations. A detailed company credit report will provide understandable credit information, including comprehensive demographic, financial and public record information, as well as analytic scores. Credit information would include your payment habits, trade experiences and any trends over time. You can then use this information to paint a detailed picture of your potential business partner and make a more informed decision on whether to go into business with them.

 

Securing finance

Your credit report paints a financial picture of your company for the world to see. Incorrect information will present your company in the wrong. When you and your business partner have good personal credit ratings it can benefit your business by enabling you to secure financing to develop, grow, and expand your business much faster and easier since lenders use credit scores in their decision-making process. Not doing a credit check could result in lenders and suppliers making unfavourable decisions if you partner with someone with a bad credit score.

My Company Check

My Company Check has direct links to ASIC and CreditorWatch to provide you with reliable current and historical company information. www.mycompanycheck.com.au

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