Every company has a credit account, no matter the sort of business being run, or the sort of company it is. If it is a company, or a business, there is 100% chance it has a credit account. The credit account of a company is necessary to know the amount of loans going in and out of a company. Checking the credit report of a country offers the company an opportunity to evaluate its financial stability, and its ability to give out loans. When you check the credit of a company, your improved knowledge allows you to make more informed professional and business decisions.
It is also important to run a credit check on other companies before working with them, as this gives you an opportunity to have financial knowledge of the company. This will tell you if the company has a positive credit report, or a negative one. A positive review is a smart business decision, while a negative review should be totally avoided. This is because you do not want to involve your company in a business relationship that jeopardizes your financial abilities.
How then can you check a company’s credit? To check, kindly follow the steps below:
Acquire The Information Of The Company
First and foremost, you have to find the basic information about this company. What is the name of the company? Where is it located? What does it specialize in? Who are the target market? What does people have to say about this company? All of these can be found with a simple Google or Bing search. An online search can also provide you with the name of the CEO, and past executives, the business niche, and any other information you are searching for.
If you need a database with information, you can try The Dun & Bradstreet website, which provides visitors with the information of companies scattered across the world.
Now, let’s examine these steps to checking for credit one after the other:
- Make Use Of An Online Agency: In several countries around the world, online credit agencies can help you check the credit of any company. Also, it is completely legal. An online credit agency works by gathering information about a company from various reliable sources, and this body of information usually requires the credit report of a company. There is also another common method to do this: conduct a Google search with the term “business credit reports” followed by the country in which the company is located. With this, you will find a list of credit agencies — online — all of whom have information at their fingertips. It is important to err on the side of safety, hence choosing reputable names like Company Check, Experia, and Dun & Bradstreet. However, it is important that you know that these online agencies charge companies for this information, but it’s worth every penny.
- Register With The Agency: After you must have found an agency, it is important that you register an account. Whatever company you choose, you can get started without having to pay any fee. However, you would have to meet all the necessary requirements, all of which are needed to register an account. This data includes: your name or that of your company, mobile phone number, email address, the industry your company is in, an account password, the details of your credit card, and so on.
- Find The Company: After you must have registered your details, it is time to search for the company whose credit report you are interested in. You can search and narrow the options of your search to fit the company you are looking for; these parameters include the country, state of the company, name of the company, the region in which it is located, or the town. However, since most people already know the name of the company they want to check, it is easier to just type in the name of the company into the search box. When the results emerge, it will come with every company that is similar to the one you have searched, and the company you searched itself. To be sure you have to right company, check the name and the location of the company, if it matches what you are looking for, simply click and move on to the next page. As I mentioned earlier, finding a free credit report for a company comes at a price. It is usually hard to find a website that does this for free, if any exists actually. If it’s a personal credit check, that is for individuals, there is a chance you might find some free platforms. Also, some websites offer an initial free service because they want you to register with them. As soon as you do, you will have to pay to check for more.
- Completing The Check: Naturally, the cost of credit checking varies on different websites. The sort of information you want also determines the cost of the project. For a simple, one-time company credit report, you will spend $20, or at least $1,500 each year to have an access to unlimited searches all year round.
A company credit check is important because it tells you how much debt a company is in, its chances of liquidation, and its credit rating number. Also, a one-time credit report contains all the needed financial details of a company, credit information of the executives and owner(s) as well.
The most common platforms to run a credit check are Dun & Bradstreet, which has a database of more than 70 million company listings. The website charges $61 for each report, while its Business Information Report™ Snapshot goes for a cost of $139. It also has a deal which costs $799, known as the Credit Reporter Plus, and includes 5 separate reports.
Another example is Equifax, which is a website that targets small business. A single credit check costs as low as $39.99, while an annual plan goes for $399.95.
Conclusively, a credit check is done through a credit check agency, and it does not come at a cheap price. It is also necessary to run a credit check on your own company from time to time, as this is your outward appearance to the world. In fact, your credit report is a determining factor when it comes to working with you, the same way it determines if you would work with another company. On the other hand, a check gives you an insight into the financial health status of a company. When you have this information at hand, you can make more informed financial or business choices.