Why party verification protects your trade
International trade offers growth but also introduces counterparty risk. Verification reduces exposure to fraud, non payment, and regulatory penalties by confirming that your buyer or supplier is genuine, solvent, and compliant.
Core checks to perform
- Identity and registration: Verify legal name, incorporation number, address, and directors using official registries.
- Financial health: Review credit reports, ratios, and payment history to gauge stability and liquidity.
- Sanctions and compliance: Screen against sanctions, watchlists, and adverse media. Confirm licenses where relevant.
- Reputation and references: Collect trade references, logistics feedback, and verify previous shipment volumes.
- Operational capacity: Validate facilities, staff, and quality controls. Consider on site inspection for large contracts.
Documentation to request
- Certificate of Incorporation and Memorandum and Articles.
- Recent financial statements and bank comfort letters where possible.
- Tax registration and import or export licenses if applicable.
- Beneficial ownership declarations and KYC forms.
Contract safeguards
- Use clear Incoterms and define delivery, risk transfer, and insurance responsibilities.
- Specify payment methods, timelines, and dispute resolution venues.
- Stage shipments against milestone payments and secure guarantees when appropriate.
Technology and monitoring
Leverage digital identity tools, trade finance platforms, and shipment tracking to enhance transparency. Re verify key parties annually or when behavior changes.
How PG International assists
We perform multi jurisdiction checks, compile concise risk reports, and recommend contract protections so your trade is safer and faster from the first deal onward.
Reminder: Verification depth should match transaction value and strategic importance.
