How and Why to Do a Business License and Background Check
In our modern era of technology, anyone can “be” Elon Musk, Jeff Bezos, or even Bill Gates — just say you are anyone online and people tend to believe you.
In some countries, people make a living scamming people out of their money — they call it The Game.
That is why it is vital to do at least a business license check before you make a deal, hand over your information, or give out money.
Today we will discuss how to protect yourself and your money with a license check and a business background check.
Just to be sure
The most basic way to verify a business is to run a business license check.
Every legitimate and legally documented business is required to register its business name, address, owners, industry or specialty, and other pertinent information to acquire a business license.
This information must be posted in a public area, so it can be verified by anyone who wants to do so.
A business license check is typically done by entering the license number and/or company name into a governmental site to give you the registered details for the company.
Going further in-depth
Sometimes it is wise to dig deeper into a business or entity.
For instance, if you plan to merge your company, make a substantial deal, or allow them to open an account in your business, you may want to know as much as possible.
A business background check is similar to a background check that you would give a potential employee.
This check allows you to truly see what the business is, what they do, where they are based, who is involved, and what relationships they form.
A background check on a business can take longer than a background check on an individual, due to the depth of the investigation and all the people or events that need to be investigated.
In the end, you will know if the company is safe to deal with — or not.
What to do if you find errors
If you do a background check or a license check on a business and find errors in the information they gave you compared to registered information, the first thing you should do is cease communication — this could mean they are not legitimate.
You can also report them to the authorities in the country they are registered to.
Reporting them can help to stop them from committing crimes, or allow authorities to look further into the business to determine why there was an error.
To ensure legitimacy, nearly every business around the world must register with the government to be official.
When you decide to make a big purchase or hire a company overseas, you should always do a business license check to ensure you are talking to a real business.
If you are planning to make a substantial deal or partner with an overseas business, you should take it further and do a business background check.
Always make sure you know who you are dealing with online, through the mail, or on the phone — it’s too easy to pretend to be anyone and just as easy to know better through a little research.