Top Tips on How to Effectively Credit Check a Non Limited Business.

Non limited businesses such as sole traders and partnerships have always been an issue for credit managers and business owners to effectively set credit limits.

Knowing where and how to obtain good quality information on sole traders and partnerships can be sometimes a tricky minefield beings that there is no central information centre for filing information. However this blog will help give you some pointers on how to credit check non limited businesses and where to go about doing so.

Firstly, when dealing with Proprietorships or Partnerships always ensure you get a complete application form filled out by the business owner(s). This application form should include trading address and details of the company but also the owner(s) current and previous residential property as well as trade referees. Always ensure that you have their authorisation to carry out credit checks on them as both businesses and individuals.

Secondly, use a credit reference agency such as Creditserve to double check the information given to you by the proprietor/partners and confirm there whether there is any derogatory information registered against them as individuals or the business. There are several ways to confirm the information given is correct, one is to carry out a business report on the company and the second would be to carry out a consumer credit check on the proprietor/partners at their residential address(es).

The third option is to request a fully in-depth credit report which includes all of the above plus much more, Creditserve are the only provider of bespoke credit reports in the UK and are recognised by all the major credit insurers and provide their credit information to a multitude of blue chip organisations both in the UK and Worldwide.

Creditserve also offer online business credit reports, consumer credit reports, AML (Anti-Money Laundering) credit reports, online overseas credit reports and in house debt recovery services.

If you would like any further information on any of our services please visit www.creditserve.co.uk or email sales@creditserve.co.uk or call 01992 414222.

Consumer Credit Reports

This blog is to give you an insight into why to carry out consumer credit reports, what you can receive and how these reports benefit your company when carrying them out.

A recent study has show that 2013 has seen a marked increase in company credit checking and this is almost certainly down to the recent company failures of some of what we call the 'blue chip' companies like HMV and Comet.

However, with the new found awareness of company credit reporting there is still often a problem in obtaining good quality information for sole proprietorship and partnership businesses.

As long as you have the relevant permission and data protection licence you are able to carry out consumer credit reports on the individuals operating the businesses. The benefit of these types reports is that you can obtain current information on the owners which will assist in not only setting credit limits but also ensure that you have information so if there is a problem with payment, you have a confirmed residential address to assist in recovering your outstanding monies.

Our consumer credit reports confirm information such as:-

ü CONFIRMATION OF NAME& ADDRESS.

ü ELECTORAL ROLLCONFIRMATION.

ü INSOLVENCY SEARCH.

ü COUNTY COURT JUDGMENT &BANKRUPTCY SEARCH.

ü ADDRESS LINKS.

ü GEO-DEMOGRAPHICPROFILE.

ü CONSUMER SEARCHHISTORY.

ü CREDIT SCORE.

The main companies/industries that use this form of information are food & drink wholesalers and distributors, plumbing & building merchants, agricultural merchants and insurance brokers for their due diligence purposes. However this service is becoming widely used is assistance to credit checking the directors or shareholders of Limited Companies.

I am pleased to confirm that creditserve offer cost effective packages for all of your credit checking requirements, so please do not hesitate in contacting us direct sales@creditserve.co.uk, on twitter @creditserve or LinkedIn Martin Brown. 

Weighing Up Risk Vs Reward - Business Credit Reports

Risk Vs Reward?

When operating a business whether as a business owner, director or head of department there are several things when extending credit or entering into contract with suppliers that we need to think long and hard about.

With the recent news of large blue chip organisations such as Jessops and HMV and last years news of the likes of Comet and JJB failing there has been more emphasis on credit checking and monitoring your customers. Here are a few reasons as to why this is a prudent course of action within any accounts department whether it be for an SME or blue chip company:-

Why should we credit check our existing and potential customers?

Your existing and potential customers along with suppliers need to have business credit reports carried out on them to ensure that you do all you can to make sure you will be paid and also to maintain a secure supply chain.

When do we do a credit check?

A business credit report should be carried out at the point of when the application for credit is generated. This is also wise when setting up new suppliers.

Who offers business credit reports?

There are a whole host of credit reference agencies which can provide business information. Information can be available in different degrees of detail, and most agencies offer PAYG or subscription offers to suit.

What information is available in business credit reports?

The main points of a business credit report on limited companies is the fact you are able to attain the latest financial accounts for the company along with director details, group structure, derogatory information and credit limits to assist you with your decision.

Is there any way to ensure that if information changes I receive updates?

Along with business credit reports most credit reference agencies provide systems such as our monitoring system which sends email updates of any relevant changes on any company which is on the monitoring list.

How much do these credit reference agencies charge?

Some credit reference agencies charge dependant on usage, others on what degree of information the customers require, however the best way to obtain the best quotation is to shop around, trial systems and see which system suits your requirements best. Many providers offer unlimited packages where required covering a range of different services such as business credit reports, consumer credit reports, international credit reports, Companies House documents, debt recovery services, marketing data amongst other services.

If you would like to know anymore about business credit reports then please do not hesitate in emailing me on martin@creditserve.co.uk or Twitter @creditserve or LinkedIn Martin Brown