Glossary · Credit management
Credit check
Also called Business credit check
A business credit check reviews a company’s credit report and payment history before you give it credit terms.
A business credit check pulls a report from a credit reference agency — such as Dun & Bradstreet, Experian, Equifax or Creditsafe — showing the company’s filed accounts, any court judgments, how promptly it pays suppliers, and a risk score or recommended limit.
Public records add more. In the UK, Companies House shows filed accounts, directors and late filings for free; most EU countries have a business register with similar information.
Check before the first invoice, not after the first late one, and recheck big accounts periodically. A customer whose payments to other suppliers are slowing will slow down with you too.
Example
Before accepting a €40,000 project from a new client, a firm runs a credit check. The report shows two unpaid court judgments in the last year, so it asks for a 50% deposit.