At Commercial Domestic Investigations, we strongly believe that a credit report can protect your business from a lot of damage. There are already so many things to worry about when running a business; you don’t need the additional concern of whether a new client is going to pay their invoice or not. A credit report can be a valuable asset when deciding if you should begin trading with a client.

Are they paying their suppliers? 

A credit report will give you an idea of whether a company is making payments to clients and how quickly, are they on time or overdue? The speed at which a customer pays other suppliers can be an indication of how reliable and financially stable they are. If they’re paying their suppliers on time and in full, then you can be more confident that they have good cash flow.

What do their finances look like? 

Unfortunately, a business doesn’t usually share their financial information willingly. A credit report gives you a deeper insight into their financial behaviour and payment history. Growing profits indicates that they are in a strong position with increased sales, which would give you the peace of mind to know that they are financially stable.

What is their credit score?

A credit score is the main factor to consider when assessing the risk of a new client. Simply put, the lower the credit score, the higher the risk and the higher the score, the lower the risk. A credit score is calculated from many different components, and so it is a great indicator of how reliable a company is. A long with a credit score you can also discover any black marks or CCJ’s that a company may have been issued, this should serve as a warning that they may not be able to meet their obligations.

Do the Directors have any history?

While you may not directly deal with the owners or directors of the business, they will be making all of the key decisions behind the scenes. Many credit reports will be able to outline any previous history of the company directors, their current, resigned or dissolved appointments. If a director has a lot of dissolved appointment, it may indicate that they have poor decision making or business management skills.

At Commercial Domestic Investigations, we can help you to make a decision about your clients with our credit reporting service. If you are further down the process and you’re struggling with the weight of late payments, we can assist with your credit control. To find out more about how we can help, contact our team on 08444 15900, use our contact form or email sales@commercialdomesticinvestigations.co.uk.