Running a company credit check is relevant whenever you need to make sure another business is reliable and financially stable before entering into an agreement. It helps you make informed decisions and avoid unnecessary risks.
Here are some common situations when it’s particularly relevant:
Before working with a new customer to assess payment reliability and reduce the risk of bad debt.
Before signing a supplier or partner agreement to check financial stability and avoid disruptions.
When setting credit terms to decide on suitable limits or payment deadlines.
If you suspect financial trouble to monitor changes and act early.
To protect your reputation by ensuring you work with trustworthy companies.
Learn more in our article: 6 reasons to credit check another company