If you own a business, there are numerous situations where background checks can come in handy. Running a background check is likely easier (and cheaper) than you might imagine – especially compared the cost of not running background check might be. However, not all background checks are the same – and not all kinds of background checks are legal.
Background checks are a great way to size up smaller vendors or potential partners that you might be interested in going into business with – especially when it’s someone you haven’t met in person.
There’s no shortage of people who are great at selling themselves and even have impressive websites to match, but ultimately over-promise and under-deliver. With a background check – using just a first name, last name, and a city & state – you can instantly check past criminal convictions, judgments, bankruptcies, liens and more.
That kind of information can be invaluable before you place an order (or send payment!) and – since this kind of background check can be placed without the subject ever finding out, there’s no risk of offending a potentially good partner.
Background checks are also useful for debt collection purposes. In almost every business that extends some kind of credit (often through a monthly billing contract), there are clients/customers whose cards decline, checks bounce or who simply stop paying.
Sometimes a quick call is all that’s needed to resolve the issue, sometimes the person seems to have disappeared completely. More often than not, the amount of money involved makes it uneconomical to hire a debt collector to track them down and – even if it does make sense – the debt collection fees are tough to stomach.
Well, a people finder/background check can help you to locate the person you’re looking so you can do your own debt collection. Even if you have to negotiate a lower amount to settle the debt, you’ll probably receive significantly more than what you would have hiring a debt collector. Plus, the online background checks you can run are often what debt collectors use themselves to locate people, so you’ll have every advantage they have.
As useful as background checks can be, it’s important to note the situations where you cannot use instant background checks. While running background checks for a vendor is fine, running a background check on a prospective employee is not legal unless strict conditions are met.
And while running background checks for debt collection purposes is fine, you can’t use background checks to determine whether you should give someone credit in the first place. See our links below for more details.
In summary, background checks are a useful tool that most business could probably benefit from. With inexpensive single reports and unlimited background check plans available for a nominal monthly cost, it’s almost guaranteed to save you money – and help you sleep better at night!