Is your new supplier trustworthy? Common scams and how to avoid them.

Taking on a new supplier can open doors… or become a risk that is hard to manage. In this article we look at the key points to tell whether you are dealing with a reliable business partner or a potential problem.

⚠️ The best-known scams

In recent years we have seen many distributors fall victim to all kinds of scams, which I will take the liberty of naming:

• THE SMALL ADVANCE: Supplier A demands a "small" advance payment and never ships the goods. They ask for just 2,000 euros (to pick a figure) to secure transport or, so they say, to make sure you won't back out. But when they vanish, all you can do is swallow your pride and move on, because the company has no assets and the person never answers your calls, WhatsApp messages or emails again…
• THE BIG DEALER: Supplier A, new to the market, has an exceptional price on goods you are interested in. They tell you the goods are in the warehouse of a reputable supplier B, whom you may even know and who, incomprehensibly, quotes you a higher price for the same goods. You send the truck to load and the goods are there; you pay supplier A but, surprise, supplier B won't release the goods because it hasn't been paid by supplier A. Far-fetched? It has already happened to us twice, and more than 30,000 euros were "made to disappear" each time. In one case the victim was a long-standing customer who had even been annoyed because we were quoting him a higher price than supplier A. See how these crooks play the game!
• THE SUPER IMPORTER: Importers or wholesalers with "five minutes" of history and amazing prices, better than those of us who have been in this business for 25 years, who end up causing you tax problems because they commit major VAT fraud, and Hacienda (the Spanish tax authority) comes after you, as the one it can get hold of, under the rules on secondary liability for VAT fraud. Meanwhile they carry on with another company, and then another, until they have had enough and disappear. Some have the sheer nerve to reappear a few years later as if nothing had happened…
• THE GREAT EXPERT: Others are more sophisticated and commit fraud with triangular transactions, improperly moving the goods between the countries involved. Also, and much more dangerous because of the criminal implications, with excise duties on goods that have been moved through customs or tax warehouses incorrectly. So as not to bore you here, if you write to me I will gladly tell you about these last two cases whenever you like.

🔍 Tools to vet a new supplier

If you decide to assess a new supplier, these are some tools you should always check:

• First points to consider to decide whether it is worth spending some time and resources investigating the supplier:
  
  
  • The supplier has a web domain with a presentable website.
  • They use an email address on that same domain.
  • They have a landline as well as a mobile, and different people answer each one.
  • They have an address on Google Maps where you can check that there is a company there and that it is theirs.
    
    
• If you are convinced by the above, then go on to:
  
  
  • VIES: to check that they are registered as an intra-Community operator if they are selling you goods imported from another European Union country.
  • D & B (international) or Informa (Spain): reliable, detailed business credit reports.
  • Modelo 036 (Spanish tax registration form): to check their business activity and tax address.
  • Ask the supplier for a certificate showing they are up to date with Hacienda: a basic guarantee that they meet their tax obligations.
    

Bear in mind that both the VIES check and the tax compliance certificate should be obtained before every transaction if you have doubts about the supplier's reliability.

📊 What to check in a credit report (e.g. INFORMA)

• Year of incorporation: age is an indicator of solidity, but remember that the company may once have been reliable and since been sold to someone who isn't.
• Credit opinion: tells you how much exposure is advisable. Halve it, just in case. And never make any payment until you are absolutely sure the goods are under your control.
• Recent changes to the board or directors: these may signal instability or shifts in control, and responsibilities being handed to a director who will later disappear.

All of this takes time, access to sources and the knowledge to interpret it correctly.

✅ What RED PARALELA does for you

At RED PARALELA we have built a network in which every operator has been vetted. We take care of:

✔ Verifying each supplier's solvency and track record.
✔ Detecting risk patterns or warning signs.
✔ Guaranteeing a safe, legal and confidential buying environment.

That way you can trade with peace of mind, without having to check every detail yourself. We already do it for you.

🧠 Final thought: is it worth playing by rules you don't know?

An offer that is too good to be true can often end up costing you dearly. And when your company and your reputation are at stake, the risk isn't worth it.

If you can access similar products (perhaps at the same price, perhaps slightly higher) with full guarantees, does it make sense to bet on a supplier playing by rules they haven't told you about?

At RED PARALELA we give you access to real opportunities, with no risk to your company.

👉 Talk to your agent or log in to the platform to buy with confidence and without risk.