Sudden Increase Of Purchase Volume = Possible Scam

Author: Black-lists

Author: Black-lists

This type of scam is very common now, during the global economic crisis. It can be used not only by a professional scammer, but by a reputable company, whichfinds itself introuble. An import company has been purchasing goods from its partner for a long time. All the deliveriesare agreedon open credit. The companies know each other well and trustone another. The importer has an insured purchase limit with the seller and so far has been paying his bills in due time. One day the buyer places a very large order, which is much bigger than his ordinary purchase level. The buyer explains, that he won a big contract or got a big customer in another city or whatever. As the seller has good experience with the buyer, he sends the goods according to the order and on the usual termsof open credit. When the due date comes, the seller receives no payment from the buyer. After a short investigation he finds out that the buyer is bankrupt and there is no way toobtain the payment for the goods. Very often there are other creditorswho lost their money on this buyer. During global economic crises many companies canfind themselves ina situation where the business is decreasing, sales are falling and the income is not enough to pay the bank loan. The situation can be even worse if the owners house or apartment is mortgaged with the bank and he is personally liable for the loan. We can see that the buyer utilisedthe good reputation he had earned before. He bought the goods from several suppliers, sold everything with discount for cash, paid off the bank loan and filed for bankruptcy. Our advice is to be more cautious when your buyer places the order which is much higher than his usual purchase volume. If the buyer had earlier asked you to extend his credit from, lets say, 30 to 60 days it can be a warning sign that the financial situation of the company is getting worse.About the Author:

Black-lists.com provides information support and anti-fraud protection for companies involved in international trade. Our anti-fraud protection programme will help importers and exporters to not become the victim of a fraudulent company or individual. More information can be found on our site http://www.black-lists.com

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