How to Verify a Business Partner Before You Commit: A Practical Due-Diligence Checklist

Information gaps are normal in cross-border business. Many disputes are not caused by deliberate deception but by basic facts that nobody checked before the deal. Some scams, on the other hand, are built precisely on the fear of missing out. Run through this checklist before you formally cooperate, pay or sign.

1. Verify the counterpart and the company

• Ask for the full legal company name, registration number and place of registration, then check through the official company registry that the company exists and is in good standing;
• Check that the name matches the business card, the contract and the receiving bank account;
• Find out the person's role and whether they are authorised to sign on behalf of the company;
• Where possible, visit the office or factory, or ask for a live video walk-through;
• Ask mutual contacts, chambers of commerce or industry peers about their reputation.

2. Verify the project itself

• Is the business model clear: where revenue comes from, where the costs are, and who carries the risk?
• Are permits, licences, premises and title documents complete, and can a third party verify them?
• Are the promised returns well above what is normal for the industry?
• For land, property or equity, have a local lawyer carry out due diligence.

3. Verify payments and money flows

• The receiving account should belong to the contracting company. Be wary of requests to pay a personal account or an unrelated third party;
• Tie payments to delivery milestones and avoid paying the full amount upfront;
• Be wary of repeated requests for "guarantee deposits", "handling fees", "slot fees" or "release fees";
• Keep proof of every payment and record it in the written agreement.

4. Common warning signs

Pause and reassess if you see any of these:

• Promises of high, stable, risk-free returns;
• Repeated pressure to "decide today";
• Reluctance to provide verifiable documents, or documents that contradict each other;
• Online-only contact and refusal to meet or join a video call;
• Requests for ID photos, bank passwords, one-time codes or other sensitive data;
• Vague cooperation terms combined with urgency to collect fees.

5. Protect your own information

At the first contact there is no need to hand over ID documents, your home address or every contact channel. Confirm the company and the project first. Once both sides want to proceed, exchange the information that is actually needed, step by step. This protects you and shows respect for the other side.

6. Put the agreement in writing

Verbal promises invite disputes. Before you start, write delivery standards, timing, price, payment terms, liability and dispute resolution into a contract. In cross-border deals, also agree on the governing law and which language version prevails. For large amounts, have a professional review the contract.

7. Give yourself time to think

Allow a day or two before any major decision, and let a trusted friend or adviser look at the documents. Genuine opportunities can usually wait that long.

Closing

Verification is not distrust; it is responsibility towards both sides. At Chashe Tea Club we recommend posting the project first, exchanging contacts only when both sides agree, and verifying before you commit. If something looks suspicious, stay alert: do not transfer money and do not share sensitive information.