How to Check a Subcontractor's Financial Health Before You Sign
A subcontractor that looks financially healthy at the moment you sign isn't necessarily healthy six months into a project. That's not a reason to skip the pre-signing check, it's a reason to treat it as the first check, not the only one.
What a pre-signing check should actually cover
A reasonable pre-signing review looks at whether the subcontractor has any existing insolvency filings or court proceedings against them, how long they've operated under their current legal entity, and whether their claimed past projects check out with the clients they name. None of this is exotic due diligence, it's the basic version of what any reasonable counterparty check should involve, and it's still worth doing even when a subcontractor comes recommended.
Why a one-time check isn't enough
A subcontractor's financial position can change meaningfully over the life of a project, especially a long one. The check that matters most isn't always the one done before signing, it's whether anyone is still watching for a change in status while the work is underway. Most teams don't re-check a subcontractor's standing partway through a project, not because it isn't important, but because doing it manually, especially across more than one country, isn't realistic to sustain.
Where ongoing monitoring fits in
This is the gap between a one-time due diligence check and actual risk management. Distress Monitor tracks real-time insolvency filings across 21 European countries for the subcontractors you're already working with, not just the ones you're about to sign, so a change in status surfaces the moment it's filed, not whenever someone happens to check again.
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