Director Search - Things Director Checks Can Reveal

Credit risk management is important for any business whatever the size, which is why it’s sometimes necessary to check up on others in the trade. For instance, it’s become popular for reputable lending companies to discover useful information about potential clients by performing director credit checks, which provide detailed reports about directors and their companies.
 

What does a director report reveal?

Director reports show up-to-date information including personal details, report summaries, a reliable history of previous company directorships, live directorships of enterprises (trading and non-trading), and also resigned directorships and any dissolved companies. You can search any UK company director here with a director search.

These checks are usually easy to get a hold of 24/7, and the relevant online databases are generally vast and comprehensive, not to mention updated on a regular basis, usually through feeds from sources such as County Courts, Companies House and other reputable sources. According to credit check experts, these reports are 99.6 per cent accurate.

Reports are commonly ordered by both public and private limited companies within the United Kingdom. Company reports can also be ordered, which can include ownership details, statutory and risk data, information about directors, interims, shareholders, flow, ratios, profit and loss accounts, and more.
 

The benefits of a director check

Carrying out a director check will normally produce comprehensive director reports featuring valuable information about the director of a company, their past and current directorships. The main benefit of using the service is piece of mind, along with the following:

• If you’re a potential creditor you can properly assess the credit worthiness of a particular business based on the past successes of its company directors, helping you to make a more informed and confident decision. 
• Protecting your company from individuals who carry bad debt and make wise and lucrative investments.
• Determining a director’s general credentials from their business history, including their previous company and director experience. 
• Checking the solvency information of a director’s past companies can help you better understand whether the director was involved with any failed businesses in the past.
• Of course, because these checks are publicly available, directors can easily check their own reports to see which information is held about them. 
• If you want to get into business with a specific director, these reports can help you to gain important background knowledge which you may be able to use to your advantage.
 

What does a director report look like? 

Here is an example director search report provided by First Report which shows all relevant data on a director’s past and current companies. As you can see, one of the example companies has been marked with compulsory liquidation in the report. You’ll also notice at the bottom that the director in question has no current convictions. 

There are also other ways to check whether a director is reputable, including the register of disqualified directors. More about that below.
 

The register of disqualified directors 

When dealing with an unknown company, it’s relatively easy to carry out a director check to find out whether someone has been disqualified from being a company director. You can to search the register of disqualified directors, with a first name, last name or postal town to find:

• The last registered address of a disqualified director
• The date of the disqualification and the end date (if applicable)
• The reason they were disqualified
 

Other ways to check

Those who are undischarged bankrupts, or are the subject of debt relief orders or bankruptcy restrictions are also automatically banned and cannot be company directors. To check if someone is bankrupt you can check the bankruptcy and insolvency register or to check whether companies are insolvent, you can use this search provided by Companies House
 

Informed decisions

When you have access to information about individuals in charge of companies, it sheds new light on their business viability, prospects and overall credit worthiness, which gives you the advantage of being able to make more informed decisions about who you get into business with.

Some companies offer subscription services which allow you to make regular and comprehensive checks on company directors whether your company is small or large.  You can also purchase prepaid packages to only use when you need them.

See more credit tips and information.