Examples as to how other AP departments are doing their due diligence when setting up new suppliers. I am currently requiring the W-9 be completed before a new supplier is paid? How do we ensure that the new supplier is legitimate?

Follow

There are several resources you might want to consider in your vendor due diligence process.

 

  • Dun & Bradstreet provides detailed financial information and company data online. It scores the credit history of a company and generally who are the owners of the business.
  • Hoovers Online provides general business information about a company including financial data and recent articles. You can also buy D&B reports from Hoovers as well.
  • You can also use the address information from the form W-9 to look up a company with the secretary of state where the business is incorporated. It will list whether the company is compliant with the state registration statutes and who the principal agents are for the company. If the business is unincorporated, then you may want to check further with the vendor and request company details such as ownership or other business references for you to check out.

We also encourage you to post your question to the Forums & Messaging section of the site to get feedback directly from your peers about how they have handled their vendor due diligence process.

Have more questions? Submit a request

Comments