i'm going to sell some products on credit to some shops. Is it ok if I asked them to give me a copy of their company registration? do i also have to ask the id card copy of the authorized signatory?

i ever had advertising agencies and other companies that give me credit terms, they asked me for these two documents. i wonder what they do with it.

any other suggestions are most welcome. Thanks alot.

Recommendations About Selling On Credit

yeah , if it's in thailand , just take the $$$ u were expecting to make and burn it ; less stressful that way

What is Your business relationship with the customer? Better to get documented evidence, properly awritten agreement and the documents you mentioned.

Dont lend to anyone in Thailand, foreign or Thai, you will struggle to get the money again

Giving credit can turn into a nightmare in Thailand.

Why do the shops want credit? Usually because thay have not got the money to pay their bills, don't want to take a risk on your products, want un-secured finance etc. etc.

If you must give credit to do business, try to adhere to the following.

- Copy of Company registration documents. (หนังสือรับรอง - nung sue rup rorng)

- ID Card & Tabien Bahn for individual (highly recommend you do not give an individual credit without a signed and (post) dated cheque for the goods/services, and don't forget this has a validity limit of six months for some banks)

- A signed agreement of credit terms. (post dated cheques, once again, are probably your best form of insurance against default)

- A late clause in above agreement stipulating interest penalties and collection costs to be born by the customer. (make sure your interest rate is not over maximum allowable by law, which I believe is 15% per annum)

- Your own appraisal of the business you will be supplying. Do they look like they can pay? Lots of customers? Do the owners/managers look competant? Do they look dodgy? (Have to trust your instinct on that one) Is it possible that you may know their other suppliers? (Talk to them - Thai's love to gossip).

Good luck.