If you are a business owner or executive tasked with performing a background check on a business, you may be wondering what information is typically included in a due diligence report on a business and how to get started. Today there is more data available on businesses and individuals than most people know what to do with.
The challenge is not necessarily finding the information you need, but sifting through the mountains of data to determine actionable insights that will provide you with the peace of mind needed when working with another business. We will help you understand your options for conducting a background check on a business.
Businesses have a financial and legal history, no different than an individual. Unfortunately, businesses are run by individuals, and individuals make mistakes. Sometimes these mistakes can raise a red flag when you are preparing to partner with or acquire a business. Before signing on the dotted line, you will want to make sure that your potential business partner hasn’t been involved in illegal activities, money mishandling, or pending lawsuits. In addition to general business activity, a good business background check will include relevant information on the business owners, board members, and key executives.
Check Public Records
One of the most straightforward ways to run a background check on a business is to search through a combination of private records and public data. This can be done on public court websites and electronic legal databases that compile and provide access to this information.
Consider Purchasing a General Business Report
Another source of information is a general business report. These reports provide high-level insight into a company’s operations, financial performance, and public filing records. Be careful as some of this data is self-reported by the company themselves.
Check Government Sources
The Federal Trade Commission regulates business in the United States by preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education. Many businesses fall into categories that are regulated by governing agencies like the ATF. By researching these sources, you can determine if the business in question complies with the regulations and laws of the governing agency.
Check Business Credit Report
When conducting a thorough background check on a business, reviewing its financial health is crucial. One key resource is a business credit report, which provides valuable insights into the company's creditworthiness, payment history, and public records.
Like an individual credit score, a business credit score is essential to the financial health of any business. It impacts the business in numerous ways, such as the amount of credit and interest rates suppliers will extend.
Contact the Better Business Bureau
For a more subjective resource, consider looking into the Better Business Bureau (BBB). The BBB ratings represent the BBB's opinion of how the business is likely to interact with its customers. The BBB rating is based on information BBB can obtain about the business, and is significantly influenced by complaints received from the public.
While it’s possible to perform your background check on a business, be aware that it is a time-consuming, arduous process that takes weeks and even months to complete. If this is your first time, you will want to be careful not to miss any critical information that may only be capable of being uncovered by a professional investigator who is trained in conducting business background checks. Finally, you will need to present your findings to your colleagues or stakeholders in a way that is simple, clear, and concise.
Business Screen is a trusted provider of due diligence and business relationship background checks. Our comprehensive due diligence background checks on individuals and companies are both simple to order and exhaustive in scope. We combine human research by professionals with years of experience with proprietary technology and processes. This ensures the accuracy of the information presented and provides you with peace of mind knowing you are saving your business incalculable amounts of time and money.
By working with the team at Business Screen, you will benefit from:
Through scouring digital databases and analog sources, our passionate investigators dig deep and think critically to ensure that every result you receive is as accurate as possible.
If you expect due diligence checks to be a hassle, it’s time you raise your expectations. Our interface is straightforward because complexity belongs in our screening, not in our ordering process.
We know that when you’re faced with critical decisions, clarity isn’t a luxury, it’s a necessity. We’ve designed our reports to be effortless to analyze, helping you to confidently decide in less time.
You deserve to enjoy the peace of mind that comes from knowing that you have conducted a business background check that is not only exhaustive but easy to understand. Many business screening firms provide excess information that makes it difficult to assess. Our process from start to finish is engineered to make your job easier.
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