Factors to Consider While Performing a Background Check on a CompanyPosted on: May 22, 2018 by Gavin Muirhead
Before entering any business relationship, it is critical to ensure that you know what you’re getting yourself into. While some companies claim to pride themselves on honesty and integrity, what lurks behind the shadows is often more sinister than one expects or imagines. Getting involved with a business that you’re unfamiliar with, or entering a business relationship/contract with an already-established company requires you to do your some homework.
Most people are familiar with background checks for the purpose of sparing themselves the potential hardships of blind, online dating, for employee pre-screening, or for looking into a prospective tenant for a rental property. However, background checks serve another purpose: investigating the legal, financial, and business background of a company. If you’re entering into a business relationship or contract and would like to make sure the other party is honest, forthcoming, and worth investing in, then performing a background check on the company, business, or third party owner beforehand is a good way to cover your bases. Here are some things to consider when performing a background check on a business or company:
Reasons for a Business or Company Background Check
As previously mentioned, when you enter into a new business contract with a company or other individual, it is always a good idea to know more about their legal and financial history or current standing. This can help you determine if the company is worth investing in, and whether their track record is promising or not. Besides legal and financial history of the company itself, you can also learn about a their standing with clients in the community, or even investigate individual employees or owners and their histories. Background checks can offer valuable information that will help you make sound decisions to best secure your own future and business plan.
A Search of Various Records
When entering any business relationship, depending on the nature of the business, you might be more interested in learning certain information about the other party. The following areas of investigation are the most commonly searched by individuals performing a background check on a business or company:
Property tax records
Depending on the context, you might be interested in learning whether or not the company pays property taxes on specific locations and buildings. Property tax records can tell you a lot about a company’s financial accountability.
County court records
Similar to hiring an employee, county court records will alert you of any legal issues the company or business has encountered, as far back as you wish to view. Finding a significant legal history of a company can deter you from entering into a bad business relationship.
Along with property taxes and asset reports, credit reports tell you a lot about a individual or company’s financial responsibilities and how well they carry out the task of managing their financial obligations.
Perhaps you’re going into business with another individual, and you want to make sure you can have full faith and trust in your new business partner. Individual records can give you plenty of information about the founder of a company, a prospective business partner, or the top employees of the compmay.
Other Sources of Information
Background checks offer the most comprehensive facts and information about companies, businesses, and individuals; however, there are other sources of information you might consider as well:
Better Business Bureau
Outstanding gripes with customers and clients are funneled here usually, giving prospective clients a bigger picture of how well-received a company is in the community.
Federal Trade Commission
Depending on the type of business you’re entering, you might want to find out more about the company’s registration with this organization.
How Affordable Background Checks Can Help You
The comprehensive and detailed information our clients get from our services at Affordable Background Checks help them make more informed decisions each day. Entering into any business relationship is complex, and requires plenty of investigatory work. If you’re looking for more information on your prospective business partner or new company endeavor, our background check services can help you come to an educated choice that will better secure your financial future. Please look over our website to learn more about the different services and background check information we offer to all our clients, or contact us directly.