It is crucial to take sound commercial credit check steps when providing services. Not doing so very often leads businesses to the disruption, delay, and possible unrecoverable expenses, of having to chase up a debtor.

Often clients ask us to assist them to chase unpaid debt. All too often they are not aware of the importance of carrying out useful due diligence, and end up providing services for people/companies who had no intention of paying. 

Undertaking credit checks, company searches, checking the New Zealand Gazette, and the insolvency register, are a few options that you may take to reduce the chances of unpaid debts.

A credit check will give you insight into a person’s debt history. It will include any unpaid debts they have, or have had, in the last five years if the amount of the debt was $100 or more, the debt was more than 30 days overdue, and the creditor took steps to recover the money.

This check will give you some of the indicators you need to analyse what the person’s financial state of affairs is. A credit record will also normally include any court judgments relating to that person.

You can obtain a credit check from a major credit company in New Zealand (for example Equifax) for a fee, however you will require consent of the person before you do a credit check.

If you are doing business with a company, you can do a Company Search to find out whether the company is in the process of being liquidated. This is free, and will give you some of the insight you need to make a business decision to give credit or not.

The New Zealand Gazette is where liquidations of companies or personal bankruptcies are posted.

It can also tell you if someone has previously tried to liquidate the company, but it didn’t happen due to them paying back their debt. Undertaking a search of the New Zealand Gazette will help you determine whether they will be a reliable client/customer.

Check whether the company you might be doing business with is in liquidation, or if the person you are considering doing business with is actually bankrupt.


Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.