In business, before starting any cooperation, it is necessary to carefully feel out the situation on many fronts. One option is to make sure that your potential partner is not under sanctions. After all, if s/he turns out to be, for example, on the list of the United States Department of State, the road to this country will be closed to your company. Cooperation with “offshore” firms can also tarnish your reputation a bit. And sometimes it happens that a bubble company, with which you have started cooperating out of negligence, after its disclosure, will drag you into a reputational pit too.
In my work I came across such experience of companies after which they understood that they could not “believe their eyes”, but had to carefully check every potential counterparty. There was a case when one company was going to buy a large batch of fuel. A very favorable offer for the supply of the necessary goods came from, at first glance, a large company well-known in the whole country. Its filling stations are located in all regions of Ukraine. However, being already experienced in these affairs, an employee of the company, who was responsible for such cooperation, wanted to learn more about the supplier and checked it through the counterparty verification online system. This decision turned out to be more correct than ever.
In the process of checking he learned in YouControl that the company did not belong to any financial-industrial group, although it should, considering its scale. Despite the fact that the supplier turned out to be in line with the declared main type of activity – “wholesale of solid, liquid, gaseous fuels and related products”, it had existed on the market for only two years, which contradicted the words of its representative about the impressive market experience.
Criminal cases became “icing on the cake”. In one of the decisions there was information that a real company owning the specified brand stated that recently fraudsters had acted on its behalf. These fraudsters turned out to be the previously described supplier. Using the one-letter distinction in the name, they abused confidence of clients of the well-known company, used its logo and under the pretext of supplying fuel arranged their affairs. Moreover, there were already cases when this “fake” company took money, but for various reasons it never delivered the goods. This was also specified in judicial documents. Thus this one letter could have cost the company hundreds of thousands UAH and nerves wasted in courts, if the decision to study a potential counterparty had not been taken before concluding an agreement.
Thus vigilance cannot be lost and checking third parties in a way discussed in this Blog or otherwise is very crucial. Otherwise sooner or later a miss at the cost of hundreds or even millions UAH can be the last one for your company.
Yevgenii is a business development expert in a famous Ukrainian company which provides online services for business intelligence and check of Ukrainian contractors. He helps businesses to find solutions how to reduce economic and reputational risks.
Yevgenii has broad experience in sales and management applying both Ukrainian and international methods. He conducts searches of strategic partners, handles business development, executes agreements, runs projects, and handles human resources. Yevgenii is an experienced negotiator having hundreds of top-level successful negotiations in his portfolio.
Yevgenii has graduated from Foreign economic activity department of Institute of Municipal Management.