This blog post has been inspired by the companies I regularly come across online that provide misleading or false information about themselves. For example, I often find company websites that give the impression they are trading as limited companies, when in fact they are dormant companies and operating as sole traders (you can find this out at Companies House). This practice is misleading and I don’t trust companies that misrepresent themselves.

Another situation is when I am checking out the financial health of a potential supplier whose website has impressed me. I often find it has a negative balance sheet, sustained over a number of years.  I ask myself – will they go bankrupt in the middle of my project? Will they overcharge me or give me poor service because their debts are greater than their assets? Unless they have some unique products or services that I really need (in which case I will conduct further research on them), I just keep away. Perhaps I am too harsh?

In this blog I investigate how to reduce the risk of doing business with customers or suppliers that might let you down and potentially threaten your business.