Contractor verification in 3 steps
Signing a contract with an uncertain company is a simple path to payment jams. At Idryleaks, we often fix mistakes that result from a lack of basic partner checking before stamping the paper.
Step 1: Checking public registers
Every entrepreneur should start with the National Court Register (KRS). This is a free database that will show you if the company even exists and who is authorized to represent it. In 2023, we helped a client avoid losses when it turned out that the person signing the contract had no authority according to the register entry. Remember that an extract from the KRS is only the beginning of your work.
The second point is the white list of VAT taxpayers. If the company does not appear in this register, your transfers may be blocked, and the tax office may challenge the costs. This is a matter of tax security, which small companies often forget. Checking takes 3 minutes and protects against very unpleasant letters from the office later.
Step 2: Analysis of financial health
Verification is not just an entry in a register; it's also checking real financial potential. If a contractor has share capital at the level of 5,000 PLN and submits an offer for equipment delivery worth 450,000 PLN, you should stay vigilant. Transparency is the foundation of profit, which is why it's worth asking for references or checking financial statements in the Court and Economic Monitor.
Facts instead of promises – that's our approach at Idryleaks. Don't be afraid to ask about the history of cooperation with other companies in your industry. If a potential partner avoids answers or is evasive regarding formal matters, treat it as a red flag. It's better to lose an hour on verification than two years on recovering debts through a law firm.
Checking a contractor is not a lack of trust, it's pure business hygiene that lets you sleep soundly.
Step 3: Monitoring after signing the contract
Many people verify a company once, at the start of cooperation. That's a mistake. A company that is stable today may have a bailiff on its account in 6 months. We recommend setting up alerts in debtor registers to receive notifications as soon as your client's situation changes. Data must be secure, and your capital protected against unexpected problems.
Working on a relationship is a process, not a one-time act. If you notice worrying signals, such as payment delays of 12-15 days, react immediately. In our practice, we have seen many companies that went bankrupt because of one large, unsettled contract. We check the facts and draw conclusions before it's too late for any remedial action.
Summary in two words
Contractor verification in 3 steps is a simple system. Check the KRS, analyze finances, and monitor the situation on an ongoing basis. This approach costs you only a little time, but lets you avoid debts, which in a small business can mean the end of operations. If you need support in risk assessment, we are available in Poznań at +48 61 852 25 62.
You don't have to be an expert in commercial law, just common sense and using publicly available databases is enough. However, if you have doubts about larger transactions, we are happy to help prepare a pre-contractual audit. Remember, it's better to give up on a profitable-on-paper order than to risk your own company's liquidity.
