Slovak Import Companies, how to find the trustworthy ones?

For small companies or independent entrepreneurs, doing business with a “name” in a foreign country, problems exist for all types of scams, theft and illegitimate business. And while it may be necessary to take steps to insure one’s own interests, it is not only Slovakia of which one should be aware. Importing from any foreign country is fraught with some peril.

Undoubtedly, it is easier to deal with companies domestically or with companies that are in countries close enough for a visit. But sometimes, there are good reasons that lead people to seek international suppliers in order to import products. Following is a list of pointers that will be helpful in finding trustworthy businesses in Slovakia.

• Before contacting a company, research as much as possible. Read their website, obtain their address and phone number, find out who owns the company and other information readily available.

• If possible, travel to the location to meet face to face. If this is not feasible, check with organizations in the country to ensure the business or factory even exists. Is the address legitimate, is there a building on the property and do people work there?

• Find out if the person has a registered business name and references. Be wary of references in the person’s own country. This may be a set-up to pull the unsuspecting into the scam. Trade references from companies already in the same country as the purchaser will be honest and forthcoming. But be sure, these people are legitimate companies as well.

• Ask for a Letter of Credit. It will be necessary to validate the letter through the issuing bank as many documents are forged, falsified and/or made up. If the bank does not exist or the bank did not write the letter, this is a good indication that the company or person is a fraud. Try to track down phone numbers on your own. For example a letterhead with a phone number may be nothing more than a front for the scam. Remember that anyone can answer a telephone in the manner in which you expect. So use the number you find through legitimately published information sources.

• Contact your own government agencies to see if the company is known in any way. Whether they have provided imports in the past or whether they have been reported as a scam.

• Be cautious of persons rushing to have you Western Union money without having seen any product or having completed your due diligence. It is not necessary for the company to send free samples. Most companies do charge but send a very small amount of money for your samples so you can determine whether there is a product and whether it meets your quality expectations. Do not assume, however, that because you receive your samples as agreed that that fact alone is enough to ascertain legitimacy.

• Order a credit report to see if the company exists and has dealings elsewhere.

• Draft a detailed contract so that both sides clearly understand the terms of the agreement.

• Escrow is an excellent way to judge the person’s intent. If they are only interested in up front payment and not willing to work toward a common goal, most likely it is a scam.

• Sometimes it might be easier to deal with a domestic company with an existing arrangement. Buying locally might get you into business faster since they have done all the paperwork with the company in Slovakia and have the products you seek.

Here a few internet resources that might help when checking inconsistencies.
• http://www.orsr.sk/default.asp?lan=en (lists registered businesses by name and number)
• http://www.justice.gov.sk/a/wf.aspx (Ministry of Justice)