How to verify a foreign buyer before you ship: a checklist for exporters

A new buyer is good news until the first shipment is held because the consignee name does not match the registry, or the payment never arrives. Buyer verification is the cheapest insurance an exporter can buy, and most of it can be done in an afternoon with public sources.

Step 1: confirm the company exists

Look the buyer up in its home-country company registry, or a registry aggregator, under the exact legal name on your invoice. Confirm the registered address, status and, where available, directors. If the name on the purchase order differs from the registry name, resolve it before you prepare documents, not after.

Step 2: screen against sanctions and denied-party lists

Screen the buyer, the consignee, the notify party and any end user against the lists that apply to your lane: your own country’s lists, the destination’s, and the major international ones, including the United Nations, United States, European Union and United Kingdom consolidated lists. Record the lists checked, the date and the result. Do this for each shipment; lists change.

Step 3: match the consignee and notify party

The consignee on the bill of lading, the buyer on the invoice and the party in the letter of credit are often different entities, and that is fine as long as the relationships are documented. What causes holds is an unexplained difference: a trading name here, a legal name there, an address that does not match the registry.

Step 4: agree payment terms that match the risk

For a first shipment to an unverified buyer, prefer advance payment or a confirmed letter of credit. Documents-against-payment and open account terms belong to relationships with history. Export credit insurance can cover the gap. Whatever you choose, make sure the documents the terms require are named exactly and can be produced on time.

Step 5: keep the evidence with the file

• Registry extract or screenshot, with the date.
• Screening result, with the lists checked.
• Buyer’s import licence or registration if the destination requires one.
• Agreed payment terms and the LC text where applicable.
• Who performed and who approved the check.

Verifi runs this check as part of the shipment pack: buyer evidence from public registers, screening results and the consignee match sit next to the documents, and a second reviewer approves before the file goes out.