Wholesale Scout UK's Tips on How to Verify Your Wholesaler

London, United Kingdom, June 23, 2011 --(PR.com)-- Wholesale Scout UK have been providing information to wholesale buyers for several years. Their long-standing background in the industry and experience of dealing with trade suppliers on a daily basis give them a unique understanding of the inner-workings of business to business trading and it's pitfalls. In an attempt to help minimise the chances of buyers falling victim to these pitfalls the Wholesale Scout UK team explore the procedures that can be employed when deliberating over using a new 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 that WholesaleScout.co.uk get a lot of queries from their users regarding due diligence checks and techniques they can use to verify their potential wholesale supplier and how best to avoid scams.

The Wholesale Scout team cover several procedural checks trade buyers can deploy which will minimise their risk of being a victim of a wholesale scam. They go on to explain that sadly no system is absolutely fool-proof as each individual transaction is different but if you follow WholesaleScout's advice you can greatly improve your supplier selection process and proceed into transactions with much more confidence.

Performing Due Diligence on a Potential Wholesaler

Wholesale buyers 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 the risk and therefore increase the importance of due diligence checks.

What Kind of Checks are Required to Verify a Wholesaler?

Credit Reference Checks

If a potential wholesale supplier is run by a limited company a trader can pay to receive a credit report on them. These kind of reports supply 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 an idea on how trustworthy they are in a credit sense. A credit reference report can be ordered online through various credit referencing companies like Equifax and Experian.

Research

Simple internet research is a very valuable and sometimes under-used tool for verifying potential wholesale suppliers. Wholesale buyers should try using a search engine to find more on the company in question and the manner in which they trade. It could be possible to find a review site for the supplier's 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 a trade buyer has 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 the needs of a buyer and of verifying the wholesaler's business credentials. If a buyer is looking at spending thousands of pounds on a first order then Wholesale Scout recommends a meeting in person as a must. This will allow the buyer to get a feel for how the supplying company does business and will make deciding on whether to trade with them or not a lot easier.

References

The Wholesale Scout UK team recommends another method buyers can deploy when checking a wholesaler’s trading credentials is asking them to supply a couple of business references. These maybe long-standing customers of the supplier in question or businesses that supply to them. Using these contacts its viable to discuss the credentials of a potential wholesaler and ensure they meet the requirements of the relevant business arrangements or services offered week in week out. If a company refuses to supply referees for checking purposes it’s time to walk away from any deal.

For more helpful tips and advice on wholesale trading and finding trade suppliers check out WholesaleScout UK.

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