01
Match the legal entity across every document
Compare the business registration information with the quotation, contract, invoice and bank beneficiary. A mismatch is not automatically fraud, but it requires a clear documented explanation and appropriate review.
Do not change payment accounts based only on a chat message or urgent email. Reconfirm sensitive changes through an independently verified contact channel.
- Legal company name and registration identifier.
- Registered and operating addresses.
- Contracting entity and invoice issuer.
- Bank beneficiary name and account jurisdiction.
- Authorized contact and communication channel.
02
Confirm the supplier’s actual role and capability
A supplier may be a manufacturer, trading company, distributor or project coordinator. The role should match the order and the buyer’s expectation.
Review product range, production evidence, relevant equipment, staff, recent operating evidence and the specific processes that matter to the product. Formal audits require an agreed professional scope.
| Check | Useful evidence | Limitation |
|---|---|---|
| Business identity | Current registration record | Does not prove product capability |
| Operating site | Address confirmation, visit or live evidence | One visit does not guarantee future performance |
| Product capability | Relevant samples, equipment and production records | Must match the exact product |
| Quality system | Procedures and recent records | Certificates require validity and scope checks |
| Bank details | Beneficiary matching contract entity or explained route | Bank match alone does not prove order quality |
03
Verify the order, not only the supplier
A legitimate supplier can still quote the wrong product or omit important scope. Confirm dimensions, materials, finish, hardware, quantities, packing, lead-time basis and deviations before deposit.
Custom orders should link the deposit to a controlled quotation and a defined drawing or sample approval process.
04
Set payment milestones against evidence
Avoid treating a common deposit ratio as automatically safe. Milestones should correspond to documented order release, agreed production progress, inspection or other contract conditions.
The buyer should understand whether payment is refundable, what happens after failed inspection and how disputes will be handled. Obtain appropriate legal and financial advice for material exposure.
05
Escalate unusual risk indicators
Pause when the supplier requests an unexplained third-party account, changes beneficiary unexpectedly, refuses to identify the contracting entity, avoids written specifications or applies pressure for immediate transfer.
Verification reduces uncertainty but cannot guarantee performance. Contracts, payment method, insurance, inspection and dispute planning remain important.
Buyer questions
Frequently asked questions
Is a business licence enough to verify a supplier?
No. It helps confirm identity and scope, but capability, order specification, beneficiary, contract and operating evidence also need review.
Can a trading company be a suitable supplier?
Yes, when its role, value, pricing and responsibility are clear. The buyer should not assume it is the manufacturer if it is not.
Should I pay a personal bank account?
Treat an unexplained personal or unrelated beneficiary as a serious risk indicator. Obtain a documented explanation and appropriate professional review before any transfer.
Does a factory visit guarantee reliability?
No. It provides operating evidence at a point in time. Contract, specification, payment and quality controls are still required.
Can VELA perform a formal factory audit?
VELA can coordinate supplier checks and site evidence within scope. A formal audit, financial due diligence or certification assessment should be separately defined and may require a qualified independent provider.