Why You Would Need a Credit Check for Businesses in the USA
It isn’t “news” that in today’s world, many businesses trade across national borders, and might have clients, partners, suppliers, or vendors in a variety of time zones.
If this is the case for your business, you may enter into a contract with one or more companies in the United States. In recent years, the USA has retained its status as the world’s top-ranking economy by nominal GDP. This means that in your engagements with American companies, you are likely to find many rewarding opportunities to do business.
Before you agree to any formal arrangement with a US company, you will inevitably wish to perform your due diligence. This process will include making sure the organisation has a reputation as a sound partner with which to do business, while also presenting as low a risk as possible to your own company.
Arrange credit checks for businesses in the USA to reduce your risk
Almost all of us are familiar with the concept of credit checks for individuals. However, you might not have realised it is also possible to access credit reports on businesses, including those in the USA. These credit reports summarise the financial position of the company being checked.
Here at Creditserve, there are various reasons why we recommend credit checks for US businesses. While many of the recent headlines about the US economy have been positive ones – reflecting a surprising resilience at a time of strain for other large economies – this is not a guarantee that any particular US company you do business with will be in strong health.
In any case, UK firms – still beset by a cost-of-doing-business crisis characterised by high inflation, interest rates, and debt – can hardly afford to take risks. Anything you can do to uncover information about the financial status of any prospective American partner businesses, prior to entering into any arrangement with them, is therefore likely to be time and money well spent.
Credit checks for businesses in the USA, such as those we can provide at Creditserve, will therefore give you important insights into the financial health of potential new clients, vendors, or suppliers. This will help mitigate risks to your company, while empowering informed decision-making.
In what scenarios would your organisation benefit from credit checking a US business?
The below are some typical situations in which you might request credit checks for US businesses:
When you are evaluating a potential new partner or supplier
Whatever the nature of your possible new partnership with a USA company may be, you will want to be confident that the given organisation’s financial circumstances will not prevent them from fulfilling their obligations to you.
If, for instance, a new USA-based supplier to your company was to suddenly go out of business, you may be unlikely to receive the goods that you ordered from them. This, in turn, may compromise the quality of service you can provide to your own clients or customers, in addition to leaving your business scrambling to find an alternative supplier.
Routine credit checks for US businesses that you are considering entering into a relationship with, could help to prevent such interruptions, stress, and expense.
When you are monitoring existing partners for changes in their financial status
All manner of changes can occur with a USA business’s situation over time. However, as a company operating in another country, you might have little or no notification of adverse changes until it is too late to avoid considerable disruption.
This is why it can be a good idea to periodically carry out credit checks for businesses in the USA that are already among your firm’s clients, partners, or suppliers. Our online USA credit reports are updated on a daily basis. This helps to ensure you can always access the latest information on a given American company’s trading status, payment data, and other essential metrics.
When you are looking to secure financing
If you are seeking a cash injection for your business – perhaps to fund growth plans, or even simply to keep your company afloat – and you have identified a USA company as a promising source of such financial support, you might arrange your own credit check on them to further help mitigate risk.
We are proud here at Creditserve to help businesses to safeguard their interests. We can support your company as you seek to maintain stability and effectively navigate a fast-evolving and sometimes unpredictable commercial landscape.
To learn more about our credit checks for businesses in the USA and other jurisdictions around the world, please feel free to enquire to us via email, or to call 01992 414222.