Business Background Check

Dolson · 03-29-07, 04:14 AM

Checking the background of a business or company you intend establishing a relationship with or hiring is necessary to make sure the company has a good reputation, is licensed properly, and that there are no liens, judgments, bankruptcies or civil actions involving the company or its principles

Step 1 - Confirm the Company Reputation

Community Resources
Valuable information can be derived in records maintained at the local community. Every business, except the multinational corporations, has its community roots and is in conformity to local laws and ordinances. The locality in which the business was established can be the main source of information about many businesses.

Civic or business groups like the Filipino-Chinese Chamber of Commerce and Industry can be one reliable source of about the firm you are probing. This is unless they are cooperative and will provide you with information.

Published Items
Widen your research by including articles about the firm and its principles in the community and national newspapers in your work.

Step 2 – Verify the Company's Reputation
Be sure to ask for references when you will be doing business with a company or hiring a company’s service. Visit their office or call them up. Ask specific questions, converse with and you can derive good information. But the most reliable informants are their clients and former clients who can provide you the best picture of the company.

For some other references, the partners, suppliers, vendors, creditors and employees of the company can give further information.

Business Licensing
Every entity or individual who intend to do business in certain area is required to have license. So if you intend to contract its services, ask for business card. If the license number is not in the card, then verify it at the licensing office or at the Department of Trade and Industry.

Federal Employer Identification Number, FEIN
Just like each US citizen (and each person legally working in the USA) has an assigned Social Security Number (SSN), all US corporations have a Federal Government assigned number, it's called 'FEIN,' or Federal Employer Identification Number. It can be easily traced. Start at the local company level. Large corporations are a vast storehouse of public information.

Step 3 - Delve into the Background of Company and Principles

You may decide to conduct an even more in-depth investigation by checking the background activities of partners and owners. You want to know if there is any litigation against the company or the people who make the company decisions. Have they been sued and do records exist of resulting judgments and liens? An isolated instance or two may not indicate much, but a pattern of reoccurring litigation should be taken into serious consideration.

Calypso · 06-23-07, 01:41 AM

This is excellent advice. It's alwyays smart to check out a company before doing business with them. As a writer, I just Google potential employers. If their names come up as trouble or as non-payers, I'm outta there.

moneyforme2 · 06-29-07, 12:39 PM

Great post, This is some thing that we all need to know.

SageMother · 07-02-07, 02:05 AM

This is an excellent list. I try to check companies out as much as possible. When I can't, for whatever reason, I require a deposit before any work starts. That usually separates the men from the boys fairly effectively.

Calypso · 07-04-07, 11:56 AM

That's a good idea, SageMother. When I had a web designer do my website, her policy was to make the first two hours' work payable in advance. I didn't mind a bit. She did great work for me, and I'd hate to see her get soaked by a non-paying client.

molo · 10-24-07, 08:49 PM

Some government sources of free background check information

Free Criminal Background Reports from the Office of Foreign Assets Control

When checking for free criminal background reports, it is a good idea to check the Specially Designated Nationals (SDNs) and Blocked Persons list of the Treasury Department’s OFAC. The list contains organizations and individuals that the government considers as engaged in international trafficking of narcotics and other illegal substances and provision of weapons of mass destruction. Free criminal background reports should also include OFAC’s Patriot Act Search, where individuals are checked against various lists of terrorists and terrorist organizations.

Free Criminal Background Reports from the Drug Enforcement Administration

If you need to search for free criminal background reports regarding the provision, distribution and use of controlled substances, try checking the DEA’s list of offenders. The DEA also has an available list of their most wanted fugitives and a database of criminal cases filed against physicians.

Free Criminal Background Reports from the Excluded Parties Listing System

The Excluded Parties Listing System maintains a compilation of several important lists that are useful for checking free criminal background reports. Among these are the Denied Persons List by the Bureau of Industry and Security and the List of Parties Debarred for Arms Export Control Act Convictions by the Department of State. The Excluded Parties Listing System also maintains a database containing companies and individuals who have been prohibited from receiving federal financial aid or from engaging in federal contracts.

subhamoy · 11-06-07, 12:35 AM

Thanks for your Idea

Subhamoy