One of our customers that normally buys no more than $50,000
a month and averages less than $30,000 suddenly placed an order for $200,000.
I am concerned that this may be some kind of fraud. Any comments?
Answer: I think your concern
is justified. I would take as many of the following steps as practical
to confirm this is a legitimate order. Confirm with the salesperson that
she has been working on the large order for some time. Find out where
your merchandise is going. Insist on receiving a hard copy purchase order
from the customer. Check the ship to address; ideally, the bill-to and
ship-to addresses will be the same. If you are drop shipping the product,
make inquiries to try to find out of the goods are being delivered to
a legitimate, active business or to an unknown, mystery company. One
suggestion would be to schedule a personal visit to the customer to evaluate
the risk of extending credit first hand. |