Buyer due diligence is essential in commodity transactions. Sellers and facilitators need to know whether the buyer is genuine, authorised and capable of performing.
Key Buyer Checks
- Company registration information
- Business profile and trading background
- Authorised signatory details
- Product requirement and quantity
- Destination and delivery terms
- Banking relationship or proof of capability, where appropriate
- Track record or references, where available
Why It Matters
Without buyer verification, sellers may waste time on parties who cannot perform. False buyers can also expose parties to fraud, document misuse and reputational risk.
Related: Seller Due Diligence Checklist · Common Red Flags