Credit Checks and Company Searches in Italy

Running a company search or credit check on another company or individual is increasingly used by businesses to reduce risk and ensure the credibility of new business partners or contracts. Generally, company searches allow the research of competitors’ details, the reliability of new business partnerships, particularly when entering into a joint venture, and new employees. Credit checks provide the financial side of things. Accessing details of the company or individual’s finances lets you know that they are able to hold up their side of the deal financially and that your payment is sound.

Any company can be searched for, and any details found. This includes your own details, and being a creditable and reliable business and partner will be hugely advantageous for you when you are on the end of a company search. The availability of such information allows for the operation of good business between companies, and if you are a good company your business will only increase.

In Italy, conducting a company search or credit check can be useful for the protection of your company; simply by investigating a client’s credit history or checking up on a new supplier and their previous business transactions can safeguard you from cowboys.

There are two types of company search to conduct in Italy, with varying complexity. Firstly, the simplest type of search is Certificate of Good Standing. This provides the most basic details of the company you are interested in. Such information includes details of the company directors and shareholders, articles of association, and the local addresses of all of their offices.

Secondly is a more expansive search which is known as a comprehensive investigation and includes a credit check. It is a much more probing search and is often used by banks and venture capitalists when checking the credit history of their clients. As well as all the details above provided from a certificate of good standing, a comprehensive investigation completes accountancy, court, and credit checks. The accountancy check provides information about the company or individual’s annual turnover or income. A court check reviews the company or individual’s involvement with the court and any bad debtor classifications. A credit check analyses the company or individual’s financial state and backing. The timescale for a comprehensive investigation with credit check is three days and the price depends on how far you decide to take the investigation. There is usually an initial fee, plus additional fees for any extra searches.

Having a company search of full investigation done on a competitor or new supplier is definitely worthwhile to ensure your reassurance and confidence in your own business. The reduced risks will save you time and money in the long run, as well as helping you develop your business and increase your profitability.

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