Bankruptcy
Marketing
In today’s business world you have to constantly be on guard
against scams and the people who perpetrate them. Whether it
is a prospective employee, customer or partner you have to
take the steps to minimize risks. Background checks and
investigations are a valuable tool that every business should
use to protect itself from legal and financial threats. It is
recommended that a bankruptcy search be an integral part of
any background investigation.

A bankruptcy search will in many cases determine if a
potential customer has had financial problems in the past.
Insolvency and debt collection problems are critical issues
when you decide to extend credit to a new customer and also
when you are receiving large expensive orders. In many cases
it would be wise to do a background check including a
bankruptcy search each year.

Any time your account receivables begin to show late or
partial payments you should also consider doing another
background check. A bankruptcy search will show that a
business is in the process of petitioning the court for
bankruptcy protection thereby allow your business to stop
shipments and require prepayment for additional orders. Many
new bankruptcy filers will not notify their suppliers of an
impending bankruptcy.

It is not uncommon for one business bankruptcy to cause
additional bankruptcy problems with its suppliers and
business partners. This cascade effect could cause your
business and its employees to lose everything that you have
worked so hard for. It is a lot easier to stop a line of credit to a
customer with financial problems then to recover a debt as a
creditor during any bankruptcy proceedings.

Any time an account begins to fall behind in making regular
monthly payments should be cause for additional scrutiny. If
your relationship with a customer also starts to deteriorate
then you should consider requiring payment on delivery. In
addition you may want to initiate your collection efforts as
soon as an account is more than 30 days past due. The use of
an online collection agency is a fast and fairly inexpensive
method of making initial collection efforts. Again this may be
the time to conduct another bankruptcy search to assure that
the customer has not petitioned the court for bankruptcy
protection.

A bankruptcy search is in general not that expensive and in
many cases be a good investment in the well being of your
company. It must be understood that a bankruptcy search may
or may not detect all bankruptcy proceedings. The lack of
proper recording of bankruptcy proceedings can be a
problem. However a check of local state and federal
bankruptcy records in the state the customer is located will in
most cases assure that you will have up to date information.


                                   Bankruptcy Search
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