How do you check a company's creditworthiness?
Short answer: check registration, structure, annual figures, insolvency notices, payment behaviour and sector in turn — then translate this into a single credit limit for each customer.
Step 1: Registration and legal form
Check the registered name, KVK (Dutch Chamber of Commerce) number, legal form and registered location. If you deal with a BV, the director's personal assets are generally protected. With a sole trader or VOF, the business owner is personally liable — this changes your risk and your debt recovery options.
Watch for warning signs: a very recent incorporation, an address that turns out to be a PO box service, or frequent name changes.
Step 2: Group structure
Who is the parent company, who are the directors, and are there sister companies with a history of bankruptcies? An order placed in the name of an empty holding company presents a different risk from one placed by the operating company generating revenue.
Step 3: Annual figures
When reviewing filed annual accounts, assess at least the following:
- Equity: negative equity is a serious warning sign
- Solvency: equity divided by total assets, rule of thumb > 25%
- Age: figures older than 18 months tell you little about today
- Going concern section: explicit doubt is a red flag
Step 4: Insolvency register
Search for notices of bankruptcy, suspension of payments or debt restructuring. We display notices about legal entities; we do not publicly publish those concerning natural persons.
Step 5: Payment behaviour
Financial figures look backwards; payment behaviour is current. Look at the average payment time compared with the agreed term, the trend over the last six months and the number of payment reminders. Your own accounts receivable records are an underestimated goldmine here.
Step 6: Sector and credit limit
Bankruptcy rates and payment terms vary considerably between sectors. Combine the company overview with sector figures and translate it into a specific limit: the maximum outstanding balance you will accept for this customer.
Checklist to copy
- KVK (Dutch Chamber of Commerce) number and legal form confirmed
- Directors and group structure reviewed
- Latest annual accounts assessed
- Insolvency register consulted
- Payment behaviour over the last 6 months analysed
- Credit limit set and recorded in the ERP system
- Reassessment date scheduled
How long does this take?
Manually, around 20 to 40 minutes per company. With a credit report, you reduce this to a few minutes, including sources and an as-at date for your records.
From explanation to a company file
- Check a company's creditworthiness
Combine registration details, annual accounts, payment history and insolvency information before doing business.
- Credit report: example and request
View a clearly fictional file, its sources and limitations, and request credit information.
Sources and scope
Examples and policy choices in this article are illustrative, not a current quotation, fixed standard or financial or legal advice. The editorial revision date relates to the summary, structure and source references; it is not a reference date for the underlying data.
| Primary source | What is it used for? |
|---|---|
| KVK (Dutch Chamber of Commerce) — checking business partners | Company identification and checks on business partners. |
| De Rechtspraak — Central Insolvency Register | Official insolvency notices and available public reports; check the relevant entity and the date of the court ruling. |
Source links support the topic mentioned, but do not automatically substantiate all percentages, time frames or examples in this article. Check current terms and rules with the responsible authority.
Request credit information with sources and reference dates
