So, anytime you take on a new client, think about carrying out a simplified client due diligence. Online checks include business verification, reviews, and checks for late invoice payments. These three factors should protect you and your company to a great extent when entering new deals.Įvery new prospect that might become a client or supplier qualifies for a simplified due diligence check. Secondly, making sure the person you’re dealing with has the authority to act on the company’s behalf.Īnd finally, verifying the legal status of the company and confirming that they are doing actual business. There are many things to look out for when conducting simplified client due diligence, and I’ve discussed them in detail below.īut the three major factors you should be focusing on are firstly, determining whether the client’s identity is verifiable. As you move through the stages of your partnership, you’re going to want to conduct more thorough investigations.įor example, for an initial sit-down with a potential new client or supplier, I may just run a basic check online, skim their website and get a feel for their person before the initial meeting, just to know what is what.īut once a deal is finalized, and a contract is on the table, or even a verbal agreement already made, that is when I recommend you start investing more in doing your due diligence before you take that final step.
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