ClientVetter

Company Credit Check Before You Extend Payment Terms

Every time you start work before the invoice is paid, you are extending credit to your client. Net-30 on a $12,000 project is a $12,000 loan with no collateral. A company credit check from ClientVetter looks at the signals that matter for that kind of credit: whether the company is in good standing, whether it is what it claims, whether vendors have reported unpaid work, and what payment terms fit the risk.

Designer's desk by a window with an unopened envelope, a paper slip and a calculator beside a cup of coffee
Consultant's home office with a linen armchair, a notebook and a retainer agreement on a side table

You are already a lender

Service providers rarely think of themselves as creditors, but the cash flow says otherwise. Design studios bill on delivery, development shops invoice monthly in arrears, consultants invoice after the month, and contractors carry materials and labor until the progress payment arrives. When a client stops paying, the loss is the full value of the work plus the time spent chasing it. A short check before you agree to terms is the cheapest part of that cycle.

What the check looks at

  • Standing. State registry status (active, dissolved, forfeited), formation date and registered agent. A company that is not in good standing may struggle to pay or to be pursued.

  • Identity signals. Domain registration age, a working website over HTTPS and mail records, matched with the name on the contract.

  • Payment history signals. Public news and court record mentions tied to unpaid vendors, liens or lawsuits, read in a business capacity.

  • Member experience. Evidence-backed non-payment reports from other service providers, with the company's reply and a Resolved mark when an invoice was later paid.

  • Sanctions. Screening of the company and listed principals against the OFAC SDN list and other public government lists.

  • Reputation. A summary of public reviews and listings with links.

Check this client

Matching payment terms to the result

The report ends with suggested terms based on the band and the project value you entered. They are a starting point for your own decision, not legal advice.

Band$2k to $10k project$10k to $50k projectOver $50k project
LowYour standard termsYour standard terms, monthly invoicingDeposit and monthly milestones
WatchDeposit of a meaningful share up frontDeposit plus milestone billingLarger deposit, short payment terms, milestone sign-off
HighPayment in full up frontPayment up front per milestoneReconsider the engagement

Small changes in terms make a large difference. A deposit filters out buyers who never meant to pay, and milestone billing caps how much you can lose at any point.

How this differs from a bureau credit check

A traditional company credit check pulls a bureau file built from supplier payment data. That works for established companies with long trade histories. Many service clients are young, small or online-only and have little or no file. ClientVetter reads public records that almost every business has, and adds what other service providers have documented. The business credit report page compares both approaches in detail. If you want to understand the individual warning signs, read business credit search.

Making it a routine

The check is most useful when it is not a special event. Freelancers run it on every lead above a set project value. Agencies add it to their intake form, so no client gets net-30 without a report on file. Contractors run it before accepting a deposit schedule. Once the client signs, business credit monitoring watches for registry changes and new reports. Our client due diligence page lays out a simple intake process you can copy.

Does this check affect the client's credit?

No. ClientVetter reads public records and member reports. It does not pull a bureau credit file and leaves no trace on the client's side.

Can I check a sole proprietor?

You can check the business they run, its registry record, domain and public footprint. ClientVetter never looks into a person's private finances or personal credit, and reports may not be used for credit decisions about an individual.

What does it cost?

Plans start at $49 a month, or $24 a month billed yearly, with 25 full client checks a month. Team is $129 a month with 120 checks. See ClientVetter pricing.

Is the suggested terms table legal advice?

No. It is general guidance based on the risk band. For contract wording and collections, talk to your own attorney.

Electrical contractor in work clothes at a counter in his workshop office at dusk, sliding a new client's printed proposal into a kraft folder next to a clipboard and a mug

Check the company before you send the invoice terms

Enter the client's domain and see the first signals in the preview without a card. The full credit check opens with your account.

Check this client