Legitimacy is a precondition of a business license to operate in a specific society, country or region, and supply the necessary resources, including but not limited to investments, business partners, sales and employees, to government support and the support of the increasingly diverse stakeholders, the interrelationships between a business and the society changes with the evolution of society, the only way to clip this is through the business legitimacy changes. Current ethics, social, and societal responsibility of the business or company move towards broader value orientations as expressed in the business ethics, which balances environmental, economic, and social considerations.
Business legitimacy, therefore, follows a list of norms so that ethics, communicative, and other fundamental preconditions are met to enable it to navigate in the society, which is fast evolving and becoming more dynamic and diverse.
There have been notable adjustments on the rationale of legitimacy and frequent conflicts that originate from legitimacy related issues. This has been the cornerstone in developing a balance between corporate social, economic, and political responsibilities and corporate governance.
A company can be categorized as financial, business, non-profit making, etc. whether you are an investor or just another prospective client, it is essential to know if the company is genuine or not. As a matter of fact, legally, a company has rights as a human, therefore treated as so. You develop trust in somebody after the party has given you a reason to trust, the same suspicion is often accorded to companies. Checking if a company is legitimate protects you from fraud and cases where a supposed company sinks under after you have invested your lifetime earnings in it and without a trace.
This is how you check for the genuineness of a loan company.
- Do a background check on Google.
- Go through the company’s website.
- The legal company webpage.
- Confirm if it has secure payment modes
- Check the Better Business Bureau (BBB)
- Inquiring with the chamber of commerce.
- Tour the company’s address.
- Access the company’s credit report.
- Ask around.
1. Credit reports
A credit report is a detailed report highlighting the credit history of a company. The report further provides information about the period the company has been operational, how its managerial structure is composed, a credit score of the company with other lending bureaus, and its performance financially from most recent audits. You can check Loan advisor for urgent cash to learn more about the issues of credit report and loans.
2. Google the company profile
In this time and age, the number of companies with no online presence is almost none. If its profile is not online of it exists. However, you still need more information for assurance, the feedback on the company’s page would be helpful. It is easy to design a self-selling company profile. Still, yet the feedback from the customers and employees (new and old) is always brutally honest. If most of the reviews on the company are not positive, doubt its reliability, or there’s something wrong with it. Use your guts! Furthermore, steer away from a company with a clean slate, meaning there are no reviews; such a company is possibly a fraud.
3. Go through the company’s website
It has become increasingly easy to obtain the email address and the website to use in business. It is equally easy to ascertain the legitimacy of these details.
A company should be able to provide an alternative means to contract it other than online. These means could be a telephone number or a physical address. If you try to contact the company offline, and you are unable to reach it, then it is potentially a red flag. To be able to create a company webpage, information about “who” it is must be provided.
4. Legal company’s webpage
Almost all legal companies have got a legal webpage with all its details about the situation, contact, purpose of the company existence, year of establishment, and a host of many other details, including the policy document. You are advised to read this policy document to the end and comprehend all its provisions. If you still miss anything, you can as well involve your attorney.
This is part of the most critical indicators of a fraud establishment or a genuine business enterprise. It is vital to check if the company has provided any secure modes of making payments such as PayPal, Google checkout, we pay, etc. it is normal for companies to accept payment through some insecure modes like cryptocurrencies or cash. Still, if it is legitimate, then there is going to be a provision of a secure mode of payment.
5. Business Bureau
The bureau started as a non-profit company that was seeking to increase trust-based marketing. Its operations date back to 1912. If you are looking for information about any company, just input the name of the company in question and search. If it is listed, then it is probably legitimate.
6. Chamber of commerce
You can use the commerce chamber to verify the information provided by a company on its webpage. If it is registered, then all its registration information is recorded in with the local commerce chamber.
7. Visiting the address
In case the said company genuinely exists, then its base operations can be accessed. Making a visit to the company’s physical premises allows you to interact with the management and the staff present.
8. Ask around
This is the easiest way of making sure that a company truly exists or not. If people around confirm to hearing about its existence, then it may be probably a genuine company.
The Bottom Line
Due to increasing scam cases nowadays, it is paramount to do your due diligence before engaging in any kind of business with any company. The above ways are the most convenient. Still, you can as well obtain company information from tax records with the taxman or check the stock and forex listings. Do not get into any form of business with a company you have barely heard of blindly, be it you are soliciting for a loan, or investing or even looking to be employed, always remain vigilant.