Credit guru Thea Dudley has spent more than 30 years in LBM credit management. Now she’s here to answer your credit and collection questions. Got a question for her mailbag? Contact Thea at theadudley@charter.net
Dear Thea,
I was re-reading your articles and came across something in “Should You Give Credit to a Dark Horse Customer? Here’s How” that I haven’t done and don’t know how to do. I’m talking about running an asset check. What is that and how is it done? What is your method and resources you use? Can you please share, ma’am? Thanks again for your informative pieces.
Signed, Titillated in Texas
Dear Titillated,
I am thrilled you are enjoying the column; however, if you ever call me ma’am again I am going to drive across Texas, track you down, and beat you with my flip flop. I know it is good Southern manners, but I am not ready to feel that old.
The asset search is an outstanding tool and the equivalent of being a peeping Tom. You are looking into someone’s backyard to see what they have buried there. If you skip tracing, asset searching is one of my favorite parts of this job. If I can’t be Indiana Jones or a Neo from the Matrix, this is a close second. I don’t do this for the average day-to-day credit applications, nor do I use it on everyone. I use this methodology when I am working with the “dark horse” or deciding if I want to spend money to sue someone, i.e., what is there to get?
With an asset search I am looking for the stuff your sales rep told you was too good to be true about your multi-millionaire, land-owning customer who is now too broke to be able to pay attention let alone pay his account with you. I am looking to see if my dark horse is truly a reformed mustang or remains a donkey. Asset searching is an art form. It takes some time, talent, and creativity.
There are lots of ways to search: Some are free, some are fee-based, but either can produce information that doesn’t leave a footprint the way a credit report does. Yes, it is legal. No, a person isn’t even aware that it happened (unless you get on Linkedin, then everyone knows it was you creeping on them, unless you paid for a privacy block).
So where to begin? As with most things today, cozy up to your computer and get on the internet. Free searches are the obvious: Google, Facebook, Twitter, assorted posts and sites. Start with Google. You may have to put the name of the company or principals in many different and creative ways to get a hit. The stuff that you can find is often amazing. One search leads to another and before you know it you have a little novella. This type of “blind” search is time consuming. If you are expecting to put in one search and all is revealed, then blind investigations is not for you, dear Titillated. After Google and social media, check county court sites, tax assessors sites, clerk of the court, anywhere you think the customer in question has land or has done business. You can start searching in those counties for some possible nuggets.
It can and will be a long, tedious process. Searching website by website, county by country is a commitment and one I did a long time ago before I educated myself. I was also cheap; I didn’t want to pay for the information. I went at it the hard way. If it seems like I am discouraging you from this type of search, I’m not. I do want you to be aware of the challenges so you can make an educated choice.
Fee-based sites are great for proving information on things you are looking for, plus some things you might not have known to look for. These sites upload from public records. Depending on the site it may be updated constantly, several times a day, or once in a blue moon. As with everything in life, not all fee-based public data information sites are created equal.
There are a lot of choices out there so you have to determine which one fits your needs and your wallet. I suggest checking out a few before determining which one will work best for you. Reliable information that is updated constantly is what I look for when choosing a database. Accurint, a LexusNexus product, and TLO, a TransUnion product, are my two personal favorites. You will need to jump through some pretty wicked hoops to get either of these databases, so be prepared. There is protocol and rules.
One way to check out any data for purchase site is to use someone you know really well (like yourself or your mom) and run an address report or asset search on that person. You know exactly where you lived and what you own so it is easy to sort through. It also teaches you how to interpret the results (or you could watch the educational tutorial). If you use your mom, just know she may not appreciate your unsolicited trip down her memory lane. Beware of any site that gives you a nugget of information then up-charges you for every little detail. It is similar to getting a chocolate chip cookie one chocolate chip at a time and it’s just as irritating.
What you are looking for depends on what you are trying to do with the data. Deciding if you are going to spend the time and money to sue someone and you want to see if there is anything to get if you do? Asset search may be for you. Substantiate claims of property ownership? Asset search may be for you. Searching for judgment liens, mechanic’s liens, and lawsuits? You may want to run a more comprehensive search. What you are looking for and how deep you go depends on what result you are trying to obtain.
How you use this type of tool is up to you and your company. If you are going to go this route use good judgment, discretion, and diplomacy. Remember, with great power comes great responsibility, so conduct yourself accordingly.
