A Guide to Vendor Due Diligence
Do you really know the new vendor you’re about to work with? Never overlook the importance of vendor due diligence.
Before you work with any new supplier, you should conduct a due diligence investigation. It’s critical to learn everything you can about them so you have what you need to make informed business decisions.
Due diligence mitigates risk and clears the way for a relationship based on trust by detecting warning signs early. Make sure there are no civil, criminal, financial, or reputation risks before you enter an agreement so your security and operations are not compromised.
Why Conduct Vendor Due Diligence
A quick Internet search can provide many examples of the disastrous consequences of failed due diligence. Fines, lawsuits, damaged reputations…the list is long. In one notable case involving vendors, finance giant Morgan Stanley hired a company with no expertise in data destruction to dispose of a large number of hard drives containing the personal information of millions of customers. It didn’t go well.
A comprehensive due diligence investigation provides the information you need to give your business relationships the best chance of success.
An evaluation helps you identify potential liabilities and risks, from financial issues to litigation to reputational and expertise red flags, so you can decide if you want to enter into a contract or agreement, or renew an existing one.
It’s easy to get started with our vendor due diligence process. Simply answer some basic questions, or read on to learn more about what you can learn from our investigations.
All About Vendor Due Diligence
Vendor due diligence is not just a good idea; it’s an essential one. After all, vendors can be an essential component of your ability to do business.
When you evaluate a potential vendor or supplier, your goal is not just to make sure they are financially sound for the foreseeable future. You’ll want to assess company qualifications, performance history, civil or criminal court records, regulatory compliance, and other risks that could affect your company. You’ll also want to know the principal people involved in the company are ethical and trustworthy.
At Business Screen, our licensed investigators will do a deep dive to ensure vendors meet your requirements and expectations.
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What can The investigators uncover?
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Important Steps For Vendor Due Diligence Success
Conducting due diligence for suppliers or vendors begins with data collection, and that’s where we excel. We compile information on your potential vendor - both the company and its key people - and present it to you in a clear, easily understood format.
Our experienced and licensed investigators uncover financial issues, reputation red flags, criminal and civil court actions, and past instances of unethical practices or fraud, so you can choose a vendor who is best equipped to meet your needs. In turn, this gives you the best chance of establishing a successful relationship.
Here are some key questions you need to answer before moving forward with a business agreement or contract:
Does your vendor have proper licensing and insurance?
Does the company have the required expertise?
Has your vendor done business under or used any other names?
Who are the key people within the company?
Do they have a criminal history?
Are there any pending or previous financial or civil issues affecting the company?
Why CS Business Screen?
Vendors are critical to your business success, so make sure your evaluations are in good hands. At Business Screen, we have plenty of experience in conducting vendor due diligence checks. We’ve done more than 60,000 checks on individuals and businesses since 1996.
Our professional investigators are licensed, and use modern technology and proven methodologies to give you accurate, actionable insights. With an average 2-day turnaround, you’ll have answers fast.
How to Get Started
The first step in vendor investigations is always a preliminary consultation. It’s important for you and for us that our services are a good fit, so we will make sure we have a clear understanding of your needs. We’ll also give you a comprehensive look at our online platform so you can see how easy it is to use.
Next Steps
If you decide to move forward with a vendor due diligence investigation, here’s what you can expect.
1
Quote
We will provide a custom quote that takes into account your unique needs and expectations.
2
Submit Information
At your convenience, use our online platform to provide basic information and submit a request.
3
Investigative Process
Our team then begins the work of finding and compiling all necessary information. Usually, you’ll receive a report in about 2 days.
4
Report Review
Your report, including an executive summary, will be available online for your review.
5
Questions
Once you have gone over your report, an investigator will be available through direct message to answer your questions.
Don’t Delay Your Vendor Due Diligence
Successful vendor partnerships are built on a solid foundation of information and analysis. Protect your business interests and avoid costly surprises with an in-depth due diligence process that lets you identify risks early.
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Start Now
Mitigate risks and enjoy beneficial and profitable vendor relationships by making sure you have the answers to critical questions. Our team of professional investigators are experts in what they do. With Business Screen’s comprehensive reports, you can be confident in your business decisions.
Please get in touch for pricing information and a free consultation.
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