Bringing in a new supplier can open doors… or become a major risk. In this article, we highlight the key points to help you determine whether you’re dealing with a reliable business partner—or heading straight into trouble.
⚠️ The Most Common Scams
In recent years, many distributors have fallen victim to scams of all kinds. Let’s name a few:
THE SMALL ADVANCE:
A supplier asks you for a “small” upfront payment (say, €2,000) to “guarantee transport” or make sure you won’t back out. Then they vanish. No delivery, no response to calls, emails, or WhatsApp messages. All you’re left with is a bruised ego and the loss of your money.
THE MASTER NEGOTIATOR:
A new supplier offers an amazing price for goods that are supposedly in the warehouse of a well-known supplier you may already work with. You send your truck, the goods are there, and you pay the new supplier. But the warehouse doesn’t release the goods—because they haven’t been paid. Complex? Yes. But it’s happened. Twice. In one case, over €30,000 was lost—by a lifelong client who was also upset because we offered a lower price to the scammer than to him. These people know how to play the system.
THE SUPER IMPORTER:
Importers or wholesalers with only a couple of days of history offer better prices than seasoned professionals with 25 years in the business. They often cause you tax problems due to VAT fraud, and tax authorities apply the subsidiary liability rule—which affects you, not them. They shut down one company and open another. Some even return to the market after a few years as if nothing ever happened.
THE GREAT EXPERT:
Others are more sophisticated, operating fraudulent triangular transactions or misusing customs/fiscal warehouses—especially with excise goods. These operations are much riskier legally. If you’re curious, we’re happy to share real examples privately.
🔍 Tools to Evaluate a New Supplier
If you decide to vet a new supplier, here are tools you should always use:
Start with basic checks to see if the supplier is even worth your time:
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A presentable website with a professional domain.
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Email addresses using that domain.
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A landline number (not just mobile), with different people answering each.
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A Google Maps business listing—verify the address and that it’s a real company.
If they pass these checks, continue with:
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VIES: to confirm they’re registered as an EU VAT operator (especially for imports).
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D&B (international) or Informa (Spain): for solid, detailed commercial reports.
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Form 036 in Spain: to verify fiscal activity and address.
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Certificate of Good Standing with the Tax Office: essential for confirming they’re current on obligations.
⚠️ You should perform VIES checks and request tax certificates before every transaction if you’re unsure about the supplier’s legitimacy.
📊 What to Look For in a Commercial Report (e.g. D & B)
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Incorporation Year: Age suggests stability, but beware—companies can be sold to less trustworthy people.
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Credit Opinion: A guideline for your exposure. (We suggest halving the limit, just to be safe.)
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Recent Changes in Management: These can signal instability or the transfer of liability to an administrator who may vanish.
These checks require time, access to the right sources, and expertise to interpret.
✅ What RED PARALELA Does for You
At RED PARALELA, we’ve built a network where every supplier is validated. We handle:
✔ Solvency and background checks on every provider.
✔ Detection of risk patterns and red flags.
✔ A secure, legal, and confidential buying environment.
You can operate with peace of mind—because we do the heavy lifting for you.
🧠 Final Thought: Is It Worth Playing a Game with Unknown Rules?
A deal that looks too good can cost you dearly. And when your business and reputation are at stake, the risk is rarely worth it.
If you can access similar products—maybe at the same price, maybe slightly higher—with full guarantees, is it really worth gambling on a supplier who doesn’t play by the rules?
At RED PARALELA, we give you access to real opportunities, without putting your company at risk.
👉 Speak to your agent or access the platform to buy with confidence—risk free.