/ deposit review / payment risk / trade risk
Before You Send a Deposit: A Trade Risk Review
A deposit review should confirm supplier identity, product details, and payment route before funds move.
Why it matters
Deposits are common in sourcing, but they are also the point where leverage changes. Before funds move, the buyer should verify who is being paid, what goods are being ordered, and what evidence supports the supplier's ability to deliver.
Evidence to collect
Review the final quotation, purchase order, proforma invoice, bank details, supplier identity, sample approval, product specification, and delivery terms. If the beneficiary differs from the invoice issuer, save a written explanation.
How to review it
Treat the deposit as a decision gate. The buyer should be able to answer three questions: who receives the money, what exactly will be produced, and what evidence supports the supplier's role in production or delivery.
Where buyers get misled
Buyers get misled by urgency. A supplier may push a deposit to hold price, reserve material, or start production. Those reasons can be real, but they should not replace basic review.
Practical next step
Create a deposit approval checklist. It should be short enough to use every order and strong enough to catch entity, beneficiary, and product specification issues.
Working checklist
- Match invoice issuer and beneficiary.
- Confirm product specification.
- Save final PI.
- Check supplier identity.
- Pause unexplained account changes.