Can you spot a wolf in sheep clothing?

Due diligence – If something doesn’t feel right, act on it

Recently we were instructed to investigate the matter of an unpaid, £25k account. Something didn’t feel right about the claim, right from the start.

 

Our investigation showed a complicated trail of untruths and fraud. Including fake websites, identity fraud and hacked emails. We immediately advised the client to call in whatever guarantees they held but the prognosis wasn’t good.

 

This isn’t the outcome we want for any of our clients. So, following this costly and inconvenient process, we have been able to educate our client on how to strengthen their processes.  Central to their improvements was incorporating simple but effective ‘due diligence’ checks. These checks provide business owners with a greater volume of business and financial information about their potential clients. Which will then aid them in deciding who they deal with next time.

 

Don’t be worried to ask for client details. Like many things in business, its the way you ask. Having processes like this in place is professional and should provide client reassurance.

 

 

 

1.Treat every customer as a potential debtor !

2.Have an account opening form. Make sure you know who you’re dealing with.

3.Compare and contrast paperwork e.g. purchase orderhttps://www.thegazette.co.uk/s -Is everything as it seems?

 

Useful Resources

  • Companies House – Search for information about the company & people
  • Check financial/liquidity status – see if any financial concerns raised
  • Websites – Check the clients own site, look at reviews etc
  • Account details – Have a pro-forma to collect client details. If you would like a blank template, email us

If you have any questions or would like further information on our advice above or using our services please get in touch Contact Details

 

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