By now, we all should know that to mitigate risk for businesses, background checks are essential.
While on the hunt for new employees, background screening/pre-employment screening is crucial.
Yet background checks should not be reserved only for employees but also for suppliers/vendors. A lot of companies, at times need to partner up with suppliers to ensure a project runs smoothly.
While they hardly perform background screening on them. Why?
Is it because they’re reputable, cheap or the gentlemen’s handshake affirmed you that they are trustworthy?
Background Checks for B2B
There are ample checks available for B2Bs. The checks confirm the registration of the company and also validates their creditworthiness.
While B2B background screening may not be as popular as screening individuals, it needs to be.
Knowing the kind of business, you’re going into the partnership and the various people you’ll be interacting with is helpful to know.
Here some business checks you can perform on Dots360.
- Business Credit
- Bank Account Verification
- Business Deeds
- Principal Deeds
“While we’re in the business of collaboration and opening up the industry. It’s imperative to realize that suppliers impact businesses and vetting them is essential. You need to ensure anyone you work with is legit and can deliver.” Sipho Ngcobo, Dots Africa CEO.
Reasons why you should background screen your suppliers
You’re probably thinking is it necessary to go through the admin of vetting vendors.
Yes, it is the sooner you take the initiative, the less you have to worry about running into trouble later on.
Here are six reasons to do a background check on vendors.
To know the business, you’re dealing with.
Performing a business deed, also known as a partnership deed check, gives you a better understanding of the people who own the company.
“A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation.
It has the force of law and is designed to guide the partners in the conduct of the business.
It is helpful in preventing disputes and disagreements over the role of each partner in the business and the benefits which are due to them.” SFGATE
You may have been communicating with one of the partners and are happy with the relationship you two have. Knowing everyone else who’s involved, their responsibilities and weight is an advantage you need to have.
Not to get in bed with criminals.
After performing the business deeds check and are aware of the partners, who they’re, and what they do.
The next step should be requesting to perform a criminal check on all of them.
In various of our previous blogs, we touch on the importance of a criminal record. It’s one of those checks that give you an idea of the person you’re dealing with.
This check is one of the most crucial simply because no one wants to be dealing with a criminal. Unfortunately, it’s just bad for business.
“Criminal record checks in South Africa are legally required to be verified by using a set of digitally captured fingerprints.
Using the Automated Fingerprint Identification System (AFIS), fingerprints are checked electronically directly against the South African Police Services (SAPS) database.” MIE
Dots360 has a sister product, DotsTouch that allows for you to capture fingerprints with a biometric scanner, quickly and immediately perform a criminal record check on DotsTouch.
To have an idea of their financial footing.
Business credit checks gives an overview of the companys financial situation. Just like a personal credit score companies also can get a credit score.
According to NerdWallet “Your business credit score is a numeric representation of your company’s creditworthiness. The information on your business credit report is used to produce the score.
Business lenders use it when they’re considering your credit application to predict how likely you are to pay them back in a timely fashion. A higher score means your business has a history of paying bills on time.”
Furthermore having this information helps you to know if the supplier you’re using can manage money.
To guarantee you don’t get scammed.
References or customer reviews are a great way of finding out a suppliers work ethic, customer relations and delivery.
Yes, reviews may be biased, but they give an insight on whether or not trustworthy and if they uphold their end of the deal.
There are people out with resources to pull off brilliant scams. The lengths they will go to are great because of the rewards they’ll receive are greater.
Instead, go the extra mile and research who your supplier has done projects with and get reviews from people who have directly worked with them.
Lastly, scammers take advantage of the fact that most businesses don’t take the time to dot every i and cross every t.
You’re serious about finding the right fit.
Yes, there may be various suppliers that can easily do the job, but if you’re like us and strive to give your clients superior service and products continuously.
Then finding someone who can not only do the job but can also build relationships is a priority.
Once the business deeds and criminal background check is done, the suppliers will know that you take the hiring process thoughtfully. This will send the fraudulent and not so reliable companies packing.
It also sends out a message that your work ethic needs to be matched and are only willing to partner with companies that know what they’re doing and are legit.
Background checks ensure that the supplier chosen is qualified, reliable and best for the job.
Knowing vital information beforehand mitigates risks and financial crisis, and also avoids ending up with the wrong company.
There are numerous companies that can assist with B2B screening. While prices and SLAs may vary but they’re out there and will give you the answers you need.