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Due-diligence checklist before a major order: do more than read the business license

Insights Category · Risk Alert Published · 2026-03-08

A real business license does not equal a safe transaction. Large deals should also be tested against litigation exposure, abnormal operations and performance signals.

Due-diligence checklist before a major order: do more than read the business license

A business license, company name and official website often prove only that a company exists. They do not prove that the supplier is stable, reliable or suitable for a high-value order.

Meaningful due diligence should cross-check ownership, legal representative information, litigation history, administrative penalties, abnormal operations, public credit signals and historic performance indicators.

For high-value projects, payment structure, sample-confirmation method and on-site verification should also be aligned with contract design instead of being treated as an afterthought once risk has already materialized.

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