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Why You Should Take an Investigative Approach to Credit Reports

  Sue McConnachie   |     Jul 18, 2018

Assessing your risk using investigative-style reporting will offer valuable insights that cannot be obtained through traditional historical database reports.

While both investigative and database approaches will help you and your company evaluate risk for potential business partners - including suppliers, manufacturers, customers, partners, prospective tenants, franchisees - the two methods of credit reporting differ in many ways. 

Unlike investigative-style reporting, which takes a detailed look at a person's or company’s past, present and future, a database-style credit report only draws from historical information, offering a snapshot of a company's or individual’s credit.

While historical data is critical to any decision regarding business partners, it alone cannot provide a clear picture as to whether or not a long-term relationship will remain lucrative. Instead, you need to look at comprehensive and up-to-date information.

This is why investigative credit reports are the best choice for your company, offering the most valuable data available in databases and financial statements, as well as considering more inclusive information as it relates to your specific needs, which may contain:

  • Corporate Status - Verification that the company is active and in good standing with Companies Branch and Corporate Tax Branch (Canada Revenue).
  • Current Business Name Status – Confirmation of full legal name along with name changes, operating names, date of incorporation, addresses, officers, directors and shareholder particulars.
  • Personal Background - Confirmation of personal information including legal name, current address and Social Insurance Number (SIN).
  • Professional Accreditation Search – Confirmation that the applicant is a registered professional. Validation of registration within the applicable association reveals status, date of registration, and other significant particulars. Details may include negative information regarding disciplinary actions, suits, and complaints.
  • Education Verification - Verification of the candidate’s post-secondary education is obtained through interviews with representatives of educational institutions.
  • Current Bank Rating – Confirmation of term loans and operating lines are confirmed, including authorized limits, current balances and repayment history - obtained directly from banks and financial institutions. Determination of deposit account balances and NSF activity are reported.
  • Current Landlord References - Information about past leases and the prospect’s payment history.
  • Current Supplier References – Verification of account balances, credit limits, payment terms and experience from trade references.
  • Land Title Sub-Search - Confirmation of ownership in real property, including details regarding purchase price, mortgages and last assessed value.
  • Personal Property Lien Registrations – Identification of security agreements and liens, including borrowing facilities, lines of credit, term loans, lease facilities, and chattel mortgages through PPSA updates. Negative registrations may include tax liens, writs, land charges, crown charges, and statutory claims.
  • Derogatory Credit Information - Summarization of critical credit information including late payments, NSFs, collection claims, tax liens, legal actions, judgments, bankruptcies, and proposals.
  • Media Search - In-depth media monitoring includes full-text news, business sources, and blogs extracted from major Canadian dailies and newswires, regional community papers, TV and radio transcripts.
  • Drivers Abstract Records - A three-year history of driver’s status includes violations and points recorded.
  • Criminal Record History - A nationwide search of CPIC (Canadian Police Information Centre) database will provide information concerning any record of convictions or pending charges for which the potential employee has not been pardoned.

Additionally, investigative-style reports will help you draw more sophisticated conclusions and identify any worrisome patterns that could have an adverse effect on your business.

At Quality Credit Reporting, we take an investigative approach to every file and find the most valuable, credible and up-to-date information possible to help our clients. For more information on our reports and how they can assist your company, contact us today!

Pre Employment Candidate Screening Solutions

By Sue McConnachie

Quality Credit Reporting is North America’s premiere credit reporting agency, committed to providing unparalleled, high-quality reports and services.

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