Approve a New Supplier
Verify identity, capability, and terms before onboarding a new supplier — or trial small before scaling.
For: A buyer or category owner assessing a new supplier before placing a first PO — usually overseas, often introduced via a marketplace or trade show.
Use when: You have a shortlisted supplier and a live opportunity, and need a defensible go/hold/no-go on onboarding them.
- You can't verify the supplier as a real legal entity.
- The bank details or beneficiary name don't match the entity.
- Sanctions or restricted-party hit on the entity, owner, or bank.
- No credible export history for the product or destination.
- Quality history or certifications can't be substantiated.
- Confirm registration and beneficial ownership
- Match trading name and address
- Verify VAT / tax number
- Screen sanctions and restricted parties
· Identity
Is the supplier a verifiable legal entity?
Go — Registration, ownership, and bank details all match.
Hold — One record is stale — refresh before onboarding.
Stop — Sanctions hit, or the entity can't be verified.
· Capability
Can they actually deliver at your quality and volume?
Go — Certifications verified, references positive, capacity fits.
Hold — Capacity or QC evidence is thin — start with a trial lot.
Stop — No credible history or certifications for this product.
· Terms
Do the terms fit a first deal?
Go — Incoterm, payment structure, and inspection rights all documented.
Hold — Terms too exposed — add a deposit, LC, or D/P.
Stop — Supplier refuses any first-deal security.
· Onboarding decision
Approve this supplier?
Go — All gates passed — ONBOARD.
Hold — One gate weak — TRIAL with a small first PO.
Stop — A gate is a stop — REJECT.
- 1Approving a supplier because the sample was good, without any entity check.
- 2Taking the certification PDF at face value without verifying with the issuer.
- 3Skipping trade references under pressure of an in-stock deal.
- 4Accepting bank details from the same email as the invoice.
- 5First deal on open account with no security.
The website was slick. The registration didn't exist.
- Company registrationNo match in registry
- Beneficial ownerUnclear
- CertificationPDF only, no issuer confirmation
- ReferencesTwo positive, one non-responsive
- Proposed payment100% TT before shipment
Decision record
Record your outcome — a static, no-login summary you can copy, print, or screenshot.
- Entity verified
- Registry + ownership
- Certifications
- Verified with issuer (y/n)
- References
- Count + tone
- Terms
- Incoterm + payment structure
- Bank details
- Verified out-of-band (y/n)
- Decision
- ONBOARD / TRIAL / REJECT
- Review date
- Next check-in