Signing a business agreement is a big step, and the last thing you’d want is to discover that you’re dealing with a fraudulent company. However, things like these happen more often than we think, resulting in major financial losses and a lot of wasted time.
Therefore, doing detailed research and carrying out due diligence is seen no longer as a choice but a necessity for companies looking to prevent the loss of valuable resources. If you’re thinking about doing business abroad and worried about the authenticity of the company, here are a few tips on how to check if a company is legitimate before signing on the dotted line.
Start off by browsing the company’s official website
Online presence is a must for businesses in the digital age, and this typically calls for creating an official website that the customers can easily access. This is why one of the first steps when checking if a company is legitimate should be reviewing the website of the company you want to work with. The official website itself is not enough, though – it’s the content that you find (or lack thereof) that could help you determine whether the company is legitimate.
Generally speaking, the official website should list basic company information such as a phone number and business address. Sometimes, businesses will list fictitious addresses and give fake phone numbers in order to make it impossible to get in touch with the company. If there’s no way to contact them or the address doesn’t seem legitimate, chances are, the company is not genuine.
Check if the company is legally registered
Even a seemingly solid online presence doesn’t prove that a business is legitimate. You also need to look for crucial information such as company number. A clearly displayed company number indicates that the company has been legally registered and complies with the law. This is something you’ll typically find in the Terms and Conditions or Privacy Policy section.
Checking the registration status of a business can be draining, and partnering with companies that offer global security and investigative services can be a much less stressful alternative to investigating companies and performing complex research on your own. Rather than doing everything manually and potentially making a mistake, you can rely on these pros to gather all the important information for you using reputable resources. This translates to significant savings in terms of cost, time, and stress that are typically involved in the process.
Browse for negative news and reviews
When trying to determine whether a company is authentic or not, it’s also wise to browse the search engines for any negative news and reviews related to the company in question. Look at different sites and sources to see if there is any negative feedback. Negative reviews aren’t always an indicator of a legitimate company, but if any of them contain words such as “scam” , then that’s definitely something to take into consideration.
Other than looking for complaints about the company in question, you should also look for references on their website. If there are any, consider phoning the person who gave them just to make sure that the review they gave isn’t fake. Last but not least, search for the company’s partners, and try to get in contact with them. If they are legitimate, their partners should be able to provide a reference without any issues.
Conduct a business background check
You’ve checked for references, registered company number, and you’ve reviewed their website. Still, you’re unsure whether you’re dealing with a legitimate business, so you want to do some additional research. Screening is always a good idea before committing to work with another business, so consider conducting a business background check to further investigate the company in question.
Background checks give insight into everything from the company’s financial issues and credit reports to criminal activity and legal history. While conducting such checks isn’t cheap, it’s certainly going to save you a lot of time and money if it turns out that the company is not, in fact, legitimate.
A few steps go a long way in verifying company’s legitimacy
Scams and frauds are not as uncommon as many of us think. Therefore, it is wise to address any suspicion you might have about the company you plan on working with and check if they’re truly trustworthy. By taking the steps listed above, you can remove any doubts you may have about the company and potentially save precious resources from going to waste.
