Trading Advice

Wholesale Scout Review – How to Verify Your Wholesale Supplier

Unfortunately where there’s a demand for something there’ll be immoral types willing to capitalise on it in return for a quick buck. These scammers or con-artists are here today and gone tomorrow, they’ll promise you the earth, charge you for it and then disappear moments after your payment has been made leaving you with nothing in exchange. This can prove a particularly prominent issue in the world of wholesale sourcing as supplier information and trade pricing are often very hard to find. Due to this fact it’s no surprise really that we at get a lot of queries from our users regarding due diligence checks and techniques they can use to verify their potential wholesale supplier and how best to avoid scams. So in this article we’re going to cover several procedural checks you can deploy which will minimise your risk of being a victim of a wholesale scam. Sadly no system is absolutely fool-proof as each individual transaction is different but if you follow our advice you can greatly improve your supplier selection process and proceed into transactions with much more confidence.

Performing Due Diligence on Your Potential Wholesaler
You may have heard the term ‘Due Diligence’ in business before, it’s merely a term used to describe the procedures carried out by a company or individual when reviewing a potential new supplier. The various procedures involved help to assure that this new supplier will provide what is promised and can prove a trustworthy business associate for years to come. It’s a process that may also show that a seemingly excellent supplier has a chequered past littered with various business upsets signifying they are perhaps not to be partnered with. It’s also worth bearing in mind that dealing with a supplier purely via the internet does increase your risk and therefore increase the importance of due diligence checks.

What Kind of Checks do I need to Perform to Verify a Wholesaler?

Credit Reference Checks
If your potential wholesale supplier is run by a limited company you can pay to receive a credit report on them. These kind of reports supply you with information on previous known credit the business has received and any instances where they did not meet the repayment terms. They often give the company a credit score giving you an idea on how trustworthy they are in a credit sense. You can order one of these checks online through various credit referencing companies like Equifax and Experian.

Simple internet research is a very valuable and sometimes under-used tool for verifying potential wholesale suppliers. Try using a search engine to find more on the company and the manner in which they trade. You may find a review site for their industry where reviews from previous customers can be read. If you can’t find much when searching the company name why not try searching their trading name instead?

Organise a Meeting
If you’ve been conversing with a wholesaler via email organising a meeting may seem like a waste of time and resources but it can be a very good way of assessing whether a supplier can meet your needs and of verifying their business credentials. If you’re looking at spending thousands of pounds on your first order then we’d recommend a meeting in person as a must. This will allow you to get a feel for how they do business and will make deciding on whether to trade with them or not a lot easier.

Another method you can deploy of checking a wholesaler’s trading credentials is asking them to supply a couple of business references to you. These maybe long-standing customers of the supplier in question or businesses that supply to them. Using these contacts you can discuss the credentials of your potential wholesaler and ensure they meet the requirements of the relevant business arrangements offered week in week out. If a company refuses to supply you with referees for checking purposes it’s time to walk away from any deal.