By Start Export India • Published 5 October 2026
A large enquiry from an unfamiliar overseas buyer can be exciting. It can also lead to wasted samples, unpaid invoices or goods stuck at destination. Before you commit money, treat buyer verification as a series of checks rather than a single internet search.
This guide gives small Indian exporters a practical screening process. It is general business education; product restrictions, sanctions, payment rules and destination requirements need current advice for your specific transaction.
1. Establish who will actually buy and pay
Ask for the buyer’s registered legal name, registration number, registered address, website and the name of the person authorised to place orders. Confirm whether you are dealing with an importer, distributor, retailer or purchasing agent. The company that contacts you may differ from the consignee or payer; ask for a written explanation of each party’s role.
Check the legal name against the official company register in the buyer’s country where available. Compare the address and contact details with independent sources. A professional website, business card or marketplace badge is useful context, but does not establish creditworthiness.
2. Verify contact details independently
Call a publicly listed company number rather than relying only on the number in the enquiry. Ask to confirm the employee and purchase request. Look for spelling changes in email domains, recently changed payment instructions and inconsistencies between documents.
A free email account is not proof of fraud: some small businesses use one. Likewise, a company email address is not proof of safety. Assess the complete pattern of evidence. If contact details conflict, pause and ask the buyer to resolve the discrepancy.
3. Test whether the enquiry makes commercial sense
A credible enquiry should become specific. Ask about product specifications, packaging, order quantity, destination, expected delivery, required certifications and proposed payment terms. Check whether your product fits the buyer’s stated business.
For example, if a first-time buyer asks for 20,000 units but will not discuss size, quality tolerance or packing, request a detailed purchase specification before quoting. Do not accept the large quantity as evidence that the opportunity is real.
4. Obtain and check references
Request trade references from suppliers who have dealt with the company, with the buyer’s permission where appropriate. Contact references independently and ask concrete questions: what was supplied, when, whether payments arrived on time, and how disputes were handled. Do not ask for confidential account records.
For a significant order, consider a reputable credit-information provider or professional due-diligence service. A report has limits: check its date, the legal entity covered and the evidence behind its conclusions. An old report on a parent company does not necessarily describe the subsidiary placing your order.
5. Agree payment protection before production
Buyer checks and payment protection serve different purposes. Even a legitimate buyer can face cash-flow problems. Discuss payment options with your bank before agreeing terms, especially for a first transaction. Ask about documentary requirements, charges, bank risk and what happens if the buyer disputes the goods.
Do not describe a letter of credit, advance payment or insurance as automatically risk-free. Their protection depends on the terms, parties and execution. If using export credit insurance, confirm the buyer, limits, exclusions and notification duties with the insurer before relying on cover.
6. Start with a controlled order
Where practical, begin with a paid sample or small trial shipment and clear written acceptance criteria. Agree who pays sample freight and destination charges. A successful sample confirms only that stage; it does not justify unlimited credit on the next order.
Use a written order or contract covering specifications, quantity, price, currency, delivery responsibilities, inspection, payment, claims and dispute handling. Ask your logistics provider to check the shipment assumptions before you promise a dispatch date.
Warning signs that deserve a pause
- Pressure to pay an unexplained registration, tender or inspection fee to an unfamiliar intermediary.
- A request to ship before agreed payment conditions are met.
- Bank details changed by email without independent confirmation.
- Refusal to identify the legal buyer or explain third-party payments.
- Documents with mismatched names, addresses or product details.
One warning sign warrants clarification, not a public accusation. Keep a record of the issue and the evidence used to resolve it. If it remains unresolved, declining the transaction may be the sensible decision.
A reusable buyer-screening record
Create one file per prospective buyer with five sections: company identity; independently verified contacts; order specifications; references and credit checks; payment and shipment approval. Record the source and date of each check, unresolved questions, and who approved the next step. Store only necessary information and restrict access to your team.
A simple decision rule is: do not release production funds or cargo while a material question about identity, payment or shipment responsibility remains unanswered.
Further reading
The International Trade Administration recommends due diligence before concluding an export agreement. Its company and partner risk guidance and due-diligence resources provide useful background. These are US resources; programmes described there may not be available to Indian exporters.
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