Credit check is becoming one of the most important terms heard in UK Business. Increasingly people and businesses are looking to verify the credit worthiness of others with whom they do business. Carry out a credit check will soon become so prevalent that it will be second nature to owners and managers of private and public limited companies, partnerships and sole traders of all shapes and sizes.
At present only large corporations seems to have teams of people whose function is to do credit checks. However with advent of the internet more and more people can do a credit check on any person or legal entity with which they have business. And why shouldn't they? In the case of limited companies the individuals use the protection of the law to limited their personal liability. Information about their operations and business practices should be publicly available.
Even private individuals should get in on the act. For example, can you imagine not doing a credit check on the person or company who was going to put an extension on your house? This is usually a large expense for any private resident and cries out for that a person choose a supplier wisely.
At present most homeowner's take references of the quality of the work by contacting previous customers who may have used the company, which is pitching for the business. But how many people complete a credit check to make sure that the firm is likely to be in business over the course of the next six months or a year.
It seems unbelievable that you wouldn't want to credit check the history of someone who was about to make major structural changes to where you live. Let's face it if they went bust before they put new ones in you would feel the cold winds of a business crashing in more ways than one. In fact the moral of this tale is that you get a warm feeling from a credit check.