Introduction to Credit Checks
Getting paid for your products or services and maintaining a steady cash flow is essential for staying in business. Knowing which clients and customers will be paying on time and which ones will drag payments out or not pay at all can be critical to the success of your business. This is where credit checks come in.
What is a Credit Check?
A credit check, also known as a credit report, consists of information about a company’s or individual’s past financial behaviour. Every time a company or individual applies for a loan, credit card or mortgage, or opens a line of credit with another business a credit check will be used to help creditors decide whether an application should be approved or rejected.
Business Credit Checks
Detailed and easy-to-understand commercial credit checks play a vital role in aiding businesses to make more informed decisions when it comes to understanding the level of credit risk associated with potential new customers or suppliers.