Posts Tagged ‘credit check’
Checking company credit is essential for business owners or managers who are considering entering into a contract or taking on a new customer. It is important to trust that any new business will pay promptly and accurately, and a company credit check is the best way of investigating any businesses financial health. The details checked can range from full company or director reports, to images of documents such as mortgages, filing systems and accounts. These are all great tools for assessing a potential customer company, and will enable business managers to make an informed decision before entering into trade agreements or other financial commitments.
Checking company credit is now incredibly easy, as there are a large range of providers online to choose from. Most should have comprehensive and detailed websites, and should be easy to find through any major search engine such as Google. Most will have the facility to search for any company or director online, and will then be able to generate a report or other documentation that is needed. This information can then be emailed to the user, making the transaction very quick and simple. Online payment for the items requested is also a convenient tool, but should only be done through a secure site.
The pricing options for various items will range through different providers, but it is easy to compare pricings online and decide on the most appropriate charging system. Some companies will need to perform a company credit check very rarely. This may apply to smaller businesses, or those with a regularly returning client base. In this instance, any infrequent new customer companies will need to be checked, and many providers will be able to offer a pay-as-you-go option for this style of user. This is charged per item, and is a good idea for infrequent users who will not require the service on a regular basis.
For those who need to check company credit more frequently, perhaps a larger company, or one with a continually changing client base many providers will be able to offer reduced rates for heavier users. This may generally incorporate a subscription fee to cover a certain period of time, but will then provide large reduction of up to around 75% on items such as full company reports. For frequent users, this can work out much cheaper than the pay-as-you-go option, and is a great way to find cheaper rates online.
Many sites may also be able to offer special deals or discounts for new customers, which can be a good incentive for those who are new to the practice. It is also a good idea for those who would like to switch providers, and taking advantage of new customer offers may be a great way to save money over a period of time. Conducting company credit checks for new customers is essential to ensure that any business receives a reliable and steady income, and can ensure that there are no nasty surprises when chasing payments. This is particularly important in the current economic climate, and is good practice to protect any company.
If you have been experiencing problems with credit there are a number of ways in which you can improve your credit score and in turn improve the lenders view of you. Are you a Registered Voter? Not on the Electoral Role? It you are not listed it is most unlikely you will get any type of credit. Go and register without delay. If you are a Foreign National you should provide credit reference agencies ‘Proof of Residency’ and apply for this to be attached to your credit information. Don’t forget to ask the credit reference agency to
verify this.
How many credit applications have you applied for? If you are apply for many different types of credit in a short period of time may hurt your credit score. If you are applying for a Credit Card, Mobile Phone Contract and a Mortgage all at the same time … Don’t. Space your applications out over a sensible period of time.
Other Information
If you are moving house, about to take time off work or about to be made redundant make sure you note this on any credit application if asked. If you lie on an application not only will you not get credit it will seriously harm your chance in the future.
An essential tool in assessing the creditworthiness of any potential client, supplier, sub-contractor or private individual is the use of a Credit Check and Public Record Search – it means that you can protect your business by eliminating potential sources of bad debt before they begin. The FMB has therefore teamed up with leading Credit Reference Agency, Experian Ltd. to offer our members an invaluable Free Credit Check and Public Record Search Service.
There are two kinds of assessment available:
Comprehensive Credit Checks on limited companies and non-limited businesses are a valuable tool for your business. If you want to have a Free Credit Check carried out on a private individual, (which may include a company director or trader), this should only be done with that person’s written permission, after he or she is made aware that the FMB will be carrying out the Credit Check on your behalf. Failure to comply with this requirement will incur legal penalties for those seeking the Credit Check and will invalidate our contractual agreement with Experian Ltd. The law therefore specifically prohibits anyone from undertaking ‘sneaky’ checks – and all Searcher and Credit Checks undertaken by Experian Ltd. are formally recorded. Further request Forms for Free Credit Checks and Public Record Searches are available from the. Finance Department and must be completed and returned before the enquiries can be carried out.