Supplier payment risk decision matrix
A practical worksheet for deciding whether a supplier payment request is acceptable, needs more evidence, or should be rejected before money moves.
Fast decision rule
Start every quote with the lowest-risk payment structure the supplier will accept. Move to higher exposure only when identity, capability, sample evidence and contract details are independently checked.
| Signal | Low risk | High risk |
|---|---|---|
| Deposit request | ≤30% after proforma invoice and verified company match | 50–100% before evidence, sample, or contract |
| Recipient account | Company account matching the supplier legal name | Personal account, unrelated entity, sudden account change |
| Milestone proof | Photos/videos with order-specific markers before balance | Generic stock photos or refusal to show production progress |
| Dispute path | Platform escrow, LC, staged payment, or written inspection condition | Wire-only, no refund terms, pressure tactics |
Score before paying
- Identity fit: legal name, address, account name and export documents are consistent.
- Order specificity: PI includes model, material, quantity, packaging, lead time, tolerances and incoterm.
- Evidence freshness: sample or production proof includes current date/order marker, not only old catalogue media.
- Payment staging: deposit, balance and inspection milestones are written before transfer.
- Exit plan: buyer knows what will happen if sample fails, delivery slips, or bank details change.
Decision bands
Go Pay within agreed staged terms when account identity, PI details, sample/proof and inspection condition all pass.
Hold Ask for missing documents, video proof, revised PI, escrow option, or third-party inspection before paying.
Stop Reject or restart supplier search when account mismatch, extreme urgency, personal collection account, unverifiable company identity, or refusal to document terms appears.
Copy-ready supplier questions
- Please confirm the beneficiary account name exactly matches the contracting company name.
- Please update the PI with product specification, packaging, incoterm, lead time and balance-payment condition.
- Please provide a dated production/sample video showing our company name or order reference.
- Can the balance be paid after pre-shipment inspection or platform escrow confirmation?
- If the sample fails the agreed specification, what refund or remake condition will apply?
Use this matrix together with the landed-cost worksheet so the cheapest quote is not selected when payment exposure is structurally worse.