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Jumat, 26 Februari 2010

Safe Trade Tips 1

1 - Know Your Trade Partner
Check the credentials of potential partners before engaging in business. Be sure to verify contact information of all potential partners before engaging in any business over the internet. Always confirm if the address, phone number and email address given to you by your trading partner belongs to the same company.

It is always advisable to contact the potential partner by telephone prior to the exchange of goods, money or contracts. If a trader provides inconsistent contact details, for example an address in Nigeria and phone number from another country, we recommend that you look up the address in the local phone directory to obtain the phone number. Call this number to confirm that the person you are in touch with actually works for the company. Be suspicious of any trader who uses only an e-mail address and cell phone and is reluctant to reveal a telephone number.

Background checks from independent third-party sources includes a search for legal registration and credit reports. In many countries the existence of a company and its legal status is a matter of public record. You can check the backgrounds of established manufacturers or wholesalers with trade institutes, local or online credit agencies, or online services such as Dunn & Bradstreet (D&B).

Check with the company's registry in the partner's country to ensure that the company exists with a valid registration. If you cannot get independent access to the trader's registration information, ask your partner to provide you with a Certificate of Good Standing issued by the companies registry of his country or state/province.

You can also gain further knowledge about your partner by ordering a credit history report from a local credit agency. Credit history reports contain information about the partner's business history in their relationships with banks and other trading partners.

Unfortunately, few resources are available to verify the legitimacy of newly established businesses. Be especially careful when dealing with new businesses.

Finally, whenever possible, meet your business partner in person and visit the company's facilities. The internet may provide extensive information on your potential partner, but there is no substitute for face-to-face contact. If you would like to arrange a face-to-face meeting with a potential trade partner, please contact us.


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