IT contractors better make sure their finances are in good order following the news that an increasing number of companies are looking into the financial past of freelance workers before offering them a contract.
In the past government and City hirers checked the financial soundness of candidates in order to meet FSA and other regulatory requirements and because of the sensitive nature of the job.
However, there is growing concern in all sectors over the potential for internal fraud, according to Call Credit, a specialist credit bureau. It is not only the financial services sector that now checks credit references when considering a candidate’s suitability. IT and finance professionals are much more likely to find themselves credit reference checked than admin staff and medics.
Furthermore, Ernst & Young has discovered that a lot of companies are stockpiling cash rather than investing it and this might be encouraging firms to do more pre-employment screening of candidates.
It’s not only new applicants who could find their financial circumstances scrutinised either. Owen Roberts from Call Credit says that contractors might be credit checked if their contract is coming up for extension or renewal. Missing payments on a regular basis or applying for credit regularly as well as having a CCJ against you will indicate that you could have financial difficulties and could jeopardise your chances of securing another contract.
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Image: Credit Cards by Andres Rueda
