Before a $500,000 deal we checked:

  1. The Netherlands Chamber of Commerce (KVK). Registered for 8 months. A red flag.
  2. The court register. The ultimate beneficial owner was a defendant in two disputes over failure to perform supply contracts.
  3. Financial statements. Annual turnover of €120,000, yet it proposes a $500,000 deal. A mismatch.
  4. Industry networks. Negative feedback from a Spanish supplier.

Recommendation: walk away or require a letter of credit. The client walked away. Four months later the trader defaulted.