If you had the chance to connect with 95% of the world’s consumers, wouldn’t you seize it? Exporting opens the door to reach that vast majority that would be overlooked by focusing solely on domestic sales. Companies who export are better positioned to stabilize their business by diversifying their offerings and reducing the effects of domestic market volatility. While exporting comes with its risks, it’s essential to safeguard your business against all potential challenges.
The Export-Import Bank of the United States (EXIM) is an essential ally in reducing the risk of nonpayment when exporting. With a trade finance solution like Export Credit Insurance, mitigating the risk of nonpayment while exporting can be a reality. In addition, there are other due diligence tips you can follow to protect yourself.
Due Diligence Tips:
- Scrutinize Initial Contact: Be wary of generic emails with unprofessional language and suspicious content (e.g., Africa gold / lottery winning scams).
- Check Email Addresses: Verify email addresses match the company's domain name.
- Review Website Registration Information: Use tools like Domain Tools and Whois to check the website's age and IP location. A website established less than a year ago can be a red flag.
- Gather Company Information: Collect the company's full legal name, local language name, business registration number, address (including local language format), and contact details.
- Common Sense: Take your time and pay attention to details when evaluating potential buyers. Do your homework and conduct Google searches, looking for any red flags like bad press or litigation history.
If you want to learn more about the due diligence and risk mitigation tips for exporters, watch the entire recorded webinar w/ EXIM’s Nicole Woods and Global Business Information Services Incorporated (GLOBIS) President Louise Kern:
