Guide · Reliability
Is this company reliable? How to check it
An unknown company wants to do business with you. It looks professional, the website is nice and the price is good. But is it reliable? That is really three questions, and you need an answer to all three.
Which three questions are behind "reliable"?
- Does the company really exist? Is it in the official register of its country, is it active and is the address correct?
- Is it financially healthy? Can it pay or deliver? Look at the published accounts, the age of the company and any bankruptcies.
- Are you dealing with the real company? This is the question most often skipped. Fraudsters use the name of an existing, healthy company. Then everything is fine for questions 1 and 2, and it is still fraud. See Spotting a clone company.
What are the signs that a company is reliable?
- It has been in the register for years, without recent changes of name, address or management.
- It files accounts every year, with positive equity.
- The website has existed for a long time and the email address belongs to that domain.
- You reach the company on the landline you looked up yourself, and they know your contact there.
- The bank account is in the company’s name, at a bank in its country.
What are the 10 warning signs?
- The company was only just set up or has just woken upafter years without activity. See The dormant company.
- Recent changesof name, address or directors just before it approached you.
- No or old accountswhile the company places large orders.
- The email address does not match the websiteor is a free address.
- The website’s domain is only a few weeks oldwhile the company has existed for years.
- Only reachable by mobile or messaging app.Nobody answers the landline.
- An account in another name or another country.
- Hurry and pressureto deliver or pay quickly.
- A first order much larger than usual.
- Only glowing reviews that look alike.Reviews are easy to buy. Rely on registers rather than stars.
One red flag is not proof. If you see two or more, stop and check further first.
How do I check it in 10 minutes?
- Look the company up in the official register (Companies House, KBO, KvK, Handelsregister and so on).
- Check the VAT number in VIES.
- Look at the latest accounts.
- Find the website and landline yourself and call.
- Compare the email address and domain, and check how old the domain is.
- Check the bank account with your bank’s name check.
- Start small: a first order against prepayment or for a limited amount.
Let Safetybizz check it
SafetyBizz answers all three questions: does it exist, is it healthy, and are you really dealing with that company. With official registers, figures and a check of email, domain, phone and bank account.
See SafetyBizzFrequently asked questions
How do I know whether a company is reliable?
Check three things: whether the company really exists and is active in the official register, whether it is financially healthy according to the published accounts, and whether you are dealing with the real company. Call the company on a number you looked up yourself and check email address and bank account.
Are reviews a good way to check a company?
Not on their own. Reviews are easy to buy or fake. Official registers, accounts and your own phone check are more reliable.
What if a company looks reliable but I still have doubts?
Start small: a first order against prepayment or for a limited amount. Call the company on a number you looked up yourself and have the contact person and bank account confirmed.
Read also
- Checking a company before you do business
- Spotting a clone company
- The dormant company that suddenly wakes up
- Invoice with different bank details
Free checks
This page is general information and not legal advice.