In a time when scammers abound, it pays to take measures to check out your customers and employees. A bankrupting customer that is large enough can easily take your business with them, if they default on a large account. An employee with credit troubles can be the fertile ground for embezzlement and theft. While it’s important to network and create a wide circle of contacts, it doesn’t mean we also have to trust everyone we meet. Even a bank offering a business loan will do a credit check on you before they decide to hand over some money. Similarly, it would be wise to put some checks in place when you start to do business with customers or employees who may be too good to be true.

The Credit System
Credit checks are becoming standard for many businesses that have nothing to do with banking. Rental apartment companies and others are now running credit checks to determine whether a person will pay on time and meet all their financial obligations. Unfortunately, even if you have a customer that has an impeccable payment record, if they have trouble at some point, they may be tempted to bail on a final payment or leave something fishy in their record. While you can’t tell from their behavior with you, you can tell from their past records in their credit accounts.

Beyond the Standard Credit Check
There are numerous other checks that can be done online, from reviewing a potential employees entries in social networking sites, to getting checks done on public records through Internet detective agencies. One really can’t be too careful with employees who are in critical positions within the operation of your business or customers whose very relationship with you puts you at risk. If you are too vulnerable, it’s always wise to take out insurance on a contract where a person might default by going bankrupt. It can be expensive, but it’s worth the peace of mind that you’ve safeguarded your business from possible con artists or deadbeats.

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