How to fraud check an investor

Going into business can be really stressful. It can be made even more difficult if it's your first business venture and you've had trouble finding capital investment. When you finally find investors, it can feel like all your problems are over, but stop and consider who your investors are. If your situation seems to good to be true, it may be a good idea to check your investor's background.

Criminal record checks

This section deals with the criminal record check, which is also known as a disclosure or CRB check. This is an essential check that should be performed on potential partners or investors before going into business with them. There are two types of disclosures available: standard and enhanced. Standard disclosures Standard disclosures check to see if the candidate has ever committed any major legal offences. This type of disclosure will probably suit your needs if you only want to see if any financial or fraudulent crimes have been committed by your investor. Enhanced disclosures If you are operating a business which involves your staff interacting with children, vulnerable adults or the elderly and your investors will also be in contact with them, you should spend some more money on the enhanced disclosure as any company involved in this area is required to have CRB checks done for all staff.

Credit report

The second type of check that can be carried out is a credit history search. You can check your credit rate and those of your investors by getting a free credit check done online. These reports look at credit information that is on file for everyone in the UK. They can tell you if the credit card rate information they have provided you with is correct and if they are actually in good financial health. Experian UK One of the best sites to is Experian UK. They not only provide you with any help you may need during the credit check process, but also offer a free trial of their service, saving you a bit of money. If your investor refuses to get either the credit check or CRB check done, think twice before having them as an investor, they may have something to hide. You are within your rights to ask for these checks as they are protecting you and your new business legally.