How to Run a Background Check Before Investing in a Company

By Eric Hamilton

Aug 10, 2020 04:24 PM EDT

How to Run a Background Check Before Investing in a Company(How to Run a Background Check Before Investing in a Company) (Credit: Getty Image)

Most consumers wouldn't make a significant purchase without first researching the quality, reliability, and value of a product. This research might involve comparing brands, styles, prices, and reading reviews. When it comes to your financial investments, the routine should be the same. Before committing financial support to a company, you should know who, or what, your money will be supporting.

In addition to referencing the Better Business Bureau or requesting a business credit report, you might investigate corporate leaders specifically. A handful of websites provide more detailed background information on individuals from all over the United States. Most sites, such as checkpeople.com, claim to have access to everything from criminal records to social media accounts.

Websites that offer background checks have a variety of prices and can vary in reliability. However, there are several reasons to use an all-encompassing database for a background check:

- Data from various searches are accessible in one report

- It is more efficient and cost-effective than gathering data on your own

- Results are easier to understand

- Customer support can provide additional resources when requested

How do I get to know a company before investing?

There are several ways to ensure the security of financial investments. It might be valuable to run a background check on any primary representatives of a company. A quick visit to the company's website will provide the names of the president or chairman, CEO, chief financial officer, and more. Getting to know the decision-makers and leadership team will reveal crucial information about the company's overall integrity and reliability.

You can pull reports using only a first and last name. These can be reports specific to your interests or a request for all available reports on an individual. Compiling this data will give you insight into their previous financial involvements such as bankruptcies, liens, and lawsuits. If a phone number is your only starting point, a reverse phone search will reveal their full name.

Why would I run a background check on someone?

If you have ever done a Google search on yourself, you might have found it surprising to learn just how much information is stored online. While the top results are usually social media accounts and personal websites, there are frequently more detailed data beneath the surface. Running a background check on yourself could be a valuable tool to understand what records are accessible to anyone with a computer and your basic contact information.

There are many reasons you may be considering running a background check on an individual in your life. Whether you doubt their authenticity, or simply want to know more about them, a background check can reveal crucial information. Research doesn't have to be overwhelming or time-consuming. In fact, it can be as simple as running a phone number or name through an advanced database.

Most of the information you might need to make an informed decision is readily available within public records. However, navigating those systems can sometimes be difficult for someone who has never done it before. Websites like Checkpeople.com claim to store critical, historical information in one place to make reports easy to pull and review. They access arrest reports, lawsuits, civil records, phone book listings, bankruptcies, and sexual offender statuses to compile background information.

What information do I need for a background check?

If you're looking for pertinent information about a business owner or company personnel, it is relatively straightforward. Background checks require at least a first and last name to complete a search. However, knowing their city and state of residence will result in more refined results. Full names often appear on a company's website, and a quick Google search might reveal easily accessible public records for additional information.

You can also use phone numbers to run a reverse phone number search to reveal the caller's identity. There are a large number of online providers that can provide the phone owner's full name, location, phone carrier, and type when you type in the phone number. The report may also include address history, possible relatives, owner images, and social media information.

What are some things I should look for in a report?

When considering an investment, it is essential to evaluate the financial stability of those who hold the most significant impact on the company. Paying close attention to any bankruptcies, lawsuits, unpaid debts, and criminal reports may be most relevant. Investigating anyone with a vested financial interest in the company, including accountants and other investors, is advisable. It can also be essential to note whether this individual has been dishonest or attempted to hide their past financial mistakes.

Final thoughts

When your financial well-being is at stake, doing background checks can make a difference between a good or bad investment. In today's world, it can be far too easy to falsify data and even hide identities. Therefore, you can never be too careful when it comes to protecting your assets and seeking transparency in relationships and investments. Verifying a buy or seller's identity before committing to financial support will provide confidence and peace of mind.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics