Do you know who you are doing business with?
It may seem like a strange question, but in the current economic climate it is more important than ever to complete the necessary checks before entering into a business partnership. In unstable times like these you need to make sure that the people you are doing business with are doing well financially, have a reputable director and are not going to be the weak link in your partnership. In the end you don’t want to be propping up an unsuccessful partner.
By doing a company and director search you can see all of these details, and you will also be able to see if the director of that company has been disqualified under the company directors disqualification Act 1986, when it happened, and why. This information is vital when considering business deals, as it may make or break a deal.
You may also want to look into the history of the business, for example how long have they been in business? This information is readily available and may save your business from making the wrong decision. If the company is young then it might be a good idea to see if the director has ever been in charge of another business. If so, how did they do and why was the company dissolved? The business history of both the director and the company can go a long way to showing an overall fruitfulness of any future partnership.
If you find it difficult to get information on the company then ask around and have a look for press coverage. People in the same industry will be able to tell you about their reputation or lack of. By doing these checks you could potentially safeguard your company from financial harm, and at a time of insolvencies this is a vital piece of research.
