Company credit check

[KellyAJay]

I have a new recruitment business and just got a vacancy with a new client.
Just done a quick google check and a gov.uk account check for it to say the company is in administration?
The director never mentioned this, what's the best next step guys ?

 

[The Byre]

The next step is to step away!

 

[Ashley_Price]

Yes, as @The Byre says, don't touch if the company are in administration... that means they will almost certainly be shutting down and you would be very unlikely to be paid.

 

[MikeCC]

Double check you have the right company?

If you have, just politely decline. Or get the expected fee up front.

Mind you, it could be the administrators are doing a better job than original management!

 

[ethical PR]

If you are extending credit to your clients I would suggest you invest in a proper company credit check service rather than using Google. We used to use one which offered an annual fixed price service for as many checks as you wanted. I am sure people here can recommend different suppliers.

 

[KellyAJay]

I just don't understand why he has agreed to my fees and he's looking to take 2 x engineers on full time permanent if in administration ?
It is the right company I'm sure.
Plenty of this to come I'm sure !

 

[TotalWebSolutions]

Have you used Companies House to check on the Director - to see if perhaps he has any other companies? It could be that he has set up another company (for the same or similar business) due to some unknown issues. If you are keen to take him on as a client there is no harm in finding out a bit more - I am sure he would have expected you to be doing background checks anyway.

Or, perhaps, as has been said above the administrators might be running the business and recruiting (not sure how common this is).

 

[The Byre]

Engineers are hard to come by (unless it is a non-engineer discipline, such as music or video) and I would not be annoying them by dumping them into a dodgy company where they stand an excellent chance of working for nothing!

That would not only be unfair, but I believe that you are legally obliged to tell them that the company is in administration - and guess what any normal sane human being will say to that!

 

[Mark T Jones]

Ask! Then check out the answer. There might be a coherent answer, or you might be dealing with a chancer

 

[KellyAJay]

I am going to have to ask because we have agreed to go ahead and agreed terms. I am supposed to be sending the terms on Monday and going from there's but unsure how to approach it.
Do I just say, I've done a check on your business (as I do with all new clients) and it came up your in admin??!
Feel like he's either a chancer or there must be a reason he agreed to tho

 

[Mark T Jones]

Just ask. You will look naive if you dont

 

[Ian J]

Surely the Administrators are liable for any debts incurred after the company enters Administration so if the order came whilst the company was in Administration you have nothing to worry about

 

[KellyAJay]

I spoke to him yesterday and he gave me the vacancies to work on then I checked and it says in administration. Do you think the administrators will be liable?

 

[Ian J]

Do you think the administrators will be liable?

He should be. Have a look at this page and right at the bottom is the relevant bit:-

Q - Should I continue providing services or supplies after the date of the administration and how do I know I will be paid?

A - The company will pay for goods and services rendered to the business after the date of our appointment as Administrators against an appropriately authorised purchase order or letter of undertaking.

 

[The Byre]

The company will pay for goods and services rendered to the business after the date of our appointment as Administrators against an appropriately authorised purchase order or letter of undertaking.

I have always understood that to mean an order from the administrator and NOT from the person who crashed the business.

The OP on the other hand, seems to have an order from the director.

 

[KellyAJay]

yes it is an order from the MD...going to email him this morning

 

[RedundancyClaim]

As others have suggested, I'd recommend stepping away.