How to Verify the Legitimacy of a Business

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Once we find some suppliers we want to deal with, the first question that comes to mind is, “Is this business legitimate?” Some assume that if the business is registered in their country, they can be considered legitimate. This is a wrong assumption. Although there are rules and regulations that apply to different countries when opening a business, following their country’s business protocols does not mean they are honest. In fact, some businesses claim that they were able to acquire necessary documents to operate, but the truth is they do not.

When dealing to any business, it is important that you are very cautious since scammers are very good in gaining our trust. Don’t be fooled when presented with a nice looking business cards, business certificate and registration papers and other proof of business. Having these does not guarantee that they can be trusted.

It is important to gather as much information as you can about a certain business especially if you are in doubt. Do a thorough verification and research first. If you are still in doubt and what you have found about them does not satisfy you, better look for other suppliers that you are comfortable in dealing with.

What are the things you need to check?

First thing you need to verify if they have legitimate contact information. Avoid dealing with businesses that uses post office address or PO Box. Verify the physical address they will be providing you if it really exist. IF they have a phone number, try calling them. If no one answers and you just have to leave your message on an answering machine, stay away. You don’t want to deal with someone whom you cannot contact if you need them, isn’t it?

You can also try verifying if the business is registered with a major business directory. You can do internet search to verify this. Most of time, businesses listed here have undergone verification before they can be included on the list. You can also check if the business is truly licensed by the country it is located. The best thing to do is ask your contact person directly. Ask them if they are member of any business organization, and then make a phone call to the organization to verify their claim.

If the company has a website, browse through it and view the information they provided on the site. Is it organize and professional looking? Or does it look like it was not updated in ages? Check for feedbacks and comment either by searching them online or checking with their local business bureau. You don’t want to deal with companies with several negative comments.

Lastly if they offer unbelievably low price or too good to be true offers, that should serve as a warning sign for you to stay away. Always practice due-diligence when doing business because it is the right thing to do.

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Source by Jenilee Maniti