Necessity for Credit Check and Credit Checking Services

What is credit check?

Credit Checking Services

Customer Credit Checks

In a business, it is a general fact that on delivery of your services you would be demanding the full cash payment. However in real world, you have to extend credit to some of your customers. When you happen to extend credit you have to be sure that you will get your money back. You must check each customer’s credit history before you extend the credit. That is the best assurance to collect the sum. That may be a simple phone call or considerably more complex one.

Ways to credit check

However, when you opt to check your customer you have to slowly and carefully build a credit relationship. One thing to remember is that not all the customer deserve the same type of credit terms, thereby you have to analyze and approach on an individual basis. The main thing to keep in mind is how long the company is doing business. Companies over five years of time are more likely to settle their bills on time.

Checking the customer’s credit reports, credit references, personal credit reports on the owner or CEO, financial statements, and letters of credit are some of the key ways to check a customer’s credit.

Credit reports

It is always best to acquire a potential customer’s credit report before extending them credit. Usually the credit report ranges from £15 for a single page report and #1000 for a detailed one. The fillings include historical payment data, any lawsuits, bankruptcy records, liens and court judgments against the company and a risk rating that declare the possibility of the customer to pay their bills. Even if your potential customer do not have credit history or has a little, it is worthwhile to run a credit report as it contains all relevant data which include bankruptcy filings, corporate files, fictitious business name filings, tax liens and court judgment.

Credit Checking Services

Customer credit checks service helps to access the risk of an individual with regards to employment, financial and other contractual commitments. Credit checking services specialize in background screening of people, employees, tenants and consumers.

Tenant Checking Services

For landlords and letting agents these services provide identity checks, financial status, address verification, and also overall tenant risk rating.

For employers it provides post and pre-employment screening which comprises security vetting, identity checks, financial checks, criminal record history, address verification, qualification and professional memberships, UK right to work, verification of employment history and else more.

Risk management is undoubtedly requisite in doing business, especially when the business extends to an international level. Hence a reliable and fast credit check service is essential. These services promise you an accurate, timely apprehension into the credit worthiness of your customers.

Rely on Credit Checking Services and ease with your business!!!