By International Credit Reports
Write down what the advance payment is funding
Before reviewing a deposit, record the full order value, proposed advance, payment recipient, production milestones, and balance-payment trigger. Keep the amount and currency explicit. The same percentage deposit can represent very different exposure depending on the order and your ability to replace the supplier.
Identify the seller on the agreement and any separate manufacturer. If another company will receive the money, ask for an explanation and supporting documentation through your established process. A company credit report can inform the business review, but it does not authenticate a bank account or make a deposit recoverable.
Prepare an advance-payment review worksheet
Use the worksheet to connect the commercial promise with the evidence available before funds are released. Assign unresolved questions to an owner rather than leaving them in a long email chain.
| Area | Record before the decision |
|---|---|
| Seller | Legal identity matching the agreement and the report subject |
| Payment | Amount, currency, intended recipient, and verification status |
| Production | What starts after payment and how progress will be evidenced |
| Information | Available company evidence and the date or scope of any financial figures |
| Exception | Any changed terms, unexplained recipient, or missing document |
| Approval | Decision owner, conditions, and evidence still outstanding |
Example: compare the advance with the complete order
In an illustrative order worth USD 40,000, a 30% deposit is USD 12,000 and the remaining balance is USD 28,000. Those calculations describe the proposed cash commitment, not whether the terms are safe. Ask what evidence your team will receive before each payment and what remains exposed at each stage.
If the supplier changes the advance to 50%, the initial payment becomes USD 20,000. Record the USD 8,000 increase and review why the terms changed. Reusing an earlier approval without noting the new amount would hide a material change in the transaction being considered.
Verify payment instructions independently
Use your finance team’s payment controls alongside the company review. Keep the confirmation record with the proposed payment, and do not rely on a report’s registered address as proof that an email instruction came from the supplier.
The FBI recommends independently checking payment requests and changes to account details, including by calling a known or independently obtained contact number. FBI: business email compromise.
- Resolve unexplained identity differences before choosing a report subject.
- Specify any essential information period before purchasing research.
- Record the final conditions and who can approve a later change to the payment plan.
Find research for the proposed seller
Country pages show current report options and the local identity details useful for a supplier enquiry.