I always meet with new suppliers before doing any sort of money transfer. If possible, I’d rather pay cash for commodities during loading than sending out a deposit and crossing my fingers hoping the supplier is legitimate. The goal of meeting each of my supplier is to not only build the initial relationship, I plan on working long term with each and everyone of them. In the end, I’ve become very good friends with many of my buyers and suppliers. To me, business is about building relationships.
While this is my view on things, there are many scammers out there just looking to make a couple bucks off tricking businesses into sending an initial deposit. Below are just a couple of things to look out for:
- Lower than market value quotes – Proceed with extreme caution If a company gives you a quote that is way below market value. This scam is usually accompanied with the promise of high, steady volumes.
- Has AQSIQ number – AQSIQ numbers and its associated companies can easily be found on the internet. Scammers like to add this information in signatures of emails.
- Uses a free email account – If the supplier you’ve contacted has an email like this “[email protected],” proceed with caution!
- Quick to ask about sample containers – Scammers are pushy about trying sample plastic scrap containers and getting you to send a deposit. Don’t do it!
- Requires deposit before a visit – Does it even make sense to send a deposit before a factory visit?