You really need to check the credit risk. For companies you can do just a little bit of homework on the Companies House website to see:
- How long has the company been trading? A start up is less like likely to be a safe bet
- Have they filed their accounts on time? Showing a good grasp of their responsibilities
- Are there any current insolvency procedures against them
- Details of Directors
Using a credit agency will allow you to see several key things, beyond the above, about a company’s financial history, including the accounts. A credit score and suggested credit limit will be shown – it’s then really easy to follow. BookCheck has a score of 96/100 and a suggested credit limit of £37,000. On the other hand some may say “Cash Only”. At BookCheck we extend this checking service to our clients.
