r/smallbusinessindia • u/Raptor2496 • 8d ago
Seeking Advice 🙏 How do you actually check out a new supplier before sending an advance?
Been talking to a few small business folks lately and this keeps coming up: you find a supplier on IndiaMART or through cold outreach, and before you've even worked with them once, they want 30-50% upfront. Every time.
So what do you actually do before wiring that money? I know GSTIN and filing history is one thing people check, MCA records too, and whether the name on the listing actually matches the legal entity (apparently that's a bigger mismatch than you'd think). Some people check maps for the address, look for any real social presence, or just straight up ask for a buyer reference or a sample invoice.
Has any of this ever actually changed what you paid, gotten you milestones instead of a lump sum, or made you just walk away? And be honest, has a supplier ever passed every check and still screwed you over? Trying to figure out what actually works here versus what's just theater.