The fear of the unknown is something that affects us all. A lack of information means that you are unable to make an informed judgement, and in the word of business, this can be make or break for a company. But why leave it all up to chance? A company search takes all of the guesswork out the equation, allowing you to decide with confidence who you conduct your business with.
What Is A Company Search?
A company search allows you to easily access a large amount of information on a company, which can then be used to establish whether the company in question is trustworthy.
This information will usually take the form of a “company report” that displays information such as the directors/shareholders, company accounts/financials, and any previous County Court Judgement (CCJ’s) or other legal records that are currently available.
Most company reports will then use the available information to run a company credit check and produce a “credit score” in an attempt to quantify the level of risk that a given company poses to potential creditors.
As well as looking into the company itself, company search providers will usually allow you to run a director search, giving you the ability to see any previous appointments on a director’s record. This enables you to take into account any earlier companies the director may have had — an insight, which could prove particularly useful if there is not much information available on their current company.
Why Should You Be Using Company Searches?
Running background checks on every company you do business with is an excellent habit to get into. You might feel a bit sneaky at first, but the reality is that you put your finances -and potentially your reputation- at risk by being careless about who you associate yourself with.
But even if you do not look into every single company you deal with, there are some circumstances when conducting a thorough company search is particularly recommended, such as:
- If you are due to place a large order with a company for the first time.
- If a company wishes to place a large order with you for the first time.
- If you are in talks to partner with another company.
There’s no need to lose sleep over which companies you should and shouldn’t be dealing with. Start using company searches to your advantage now and see the benefits for yourself.