If you don’t credit check a potential customer, you are running the risk of being paid late or not being paid at all.
We have many Clients who have instructed us to recover cases and it has transpired upon instruction, that the company name is incorrect, incomplete or has poor credit.
We can supply our Clients with such information which can help avoid the ‘late/non-payers’ or simply to confirm the company is who they say they are.
You can also obtain information from:
- Companies House – for checking a limited company’s accounts
- The Insolvency Service – a registry of Individual Voluntary Arrangements and Bankruptcies
If you are still not confident that the company is credit worthy, then you could request payment upfront or you could consider having a personal guarantee signed by one of the Director(s) who has the means to pay, should the company fail to do so. This is a legally binding agreement with the Director(s) and will result in the Director being liable for any unpaid debt within the agreement.