There are various reasons to consider running a background check on a business. It may be that you are seeking a service provider and want to know their background. You might be looking to purchase something expensive, and you want to know about the reputation of the vendor, or you could be a potential employee wanting to research a potential employer.
Whatever the reason, there are numerous ways to conduct a background search. The most important background check source is government sources:
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The Federal Trade Commission
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The Securities and Exchange Commission
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The American Bar Association
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The American Medical Association
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State licensing and commissioning boards
Check to see if the company is accredited through the Better Business Bureau (BBB). You can see their rating and history of complaints. The BBB often contains information about the company name, as well. If the company was previously doing business as another entity, you can often find that information from the BBB.
Each of these resources has websites that allow you to do a search. These background check sources will reveal any history of litigation. You may also find information about malpractice, suspensions, and penalties.
You may also consider looking up the county in which the business is licensed to do business and do a public record search for any civil litigation involving the company, or it’s entities.
You can conduct a background check using any credit reporting agency. There will be a fee involved. However, if knowing the financial history of a company is essential for your purposes, this step is crucial.
If you do not have time to do a comprehensive check yourself, you can order a background check on a business. Numerous companies specialize in doing business background checks. Experian, the national consumer credit agency, offers a Business IQ Premier Profile. This background check will give you comprehensive details related to the financial stability of the company. This type of background check is frequently used to determine the creditworthiness of a business.
You also have the option of hiring a company to perform a comprehensive background check. You can customize the requested background check to include whatever information is most relevant to your purpose. Companies that specialize in comprehensive background checks on other companies:
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B&B Reporting, Inc.
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Refinitiv
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If you want the most comprehensive search available, consider hiring a private investigator. This option is expensive. Make sure you do due diligence to find a reputable private investigator with the resources to do a thorough job.
Do not forget the simple methods of using search engines like Google or DuckDuckGo. You can often find important information like reviews, complaints, and news about the company. If the company has changed names, make sure you check the previous name of the company. Extend your internet search by searching for the names of the owner and key employees of the company.
You can visit Glassdoor to gain an overview of what the people who work for the company think. You can also use LinkedIn to glean more information about the owners, executives, and employees of the company. Social media is also a resource to check though most people keep their business affairs off social media.
Compiling a profile of the history of a company can be an arduous task. It is worth the work of doing a comprehensive background check. Complete a background check before investing, accepting employment, or contracting with a company. If there is a history of litigation or financial instability, this could save you from the consequences of a bad business or employment decision.
