Good credit rating doesn't rule out a trade scam

WHEN IT comes to an increase in trade fraud, South Africa is not alone.
But because of its long isolation, South African businesses tend to be naive when it comes to trade and trade instrument fraud, according to Credit Guarantee, which warns exporters of typical scams where buyers disappear and don't pay after the goods have been shipped.
The scams typically work as follows:
The buyer starts by placing small orders for products from suppliers and either pre-pays the invoices or pays in full when due.
The buyer gradually increases the size of the orders to establish a good credit record with the supplier, then places a much larger order and disappears without paying the invoice.
Exporters are advised to scrutinise new buyers carefully and to ask questions. Does the buyer have enough money to pay for the goods and is this the product in which he normally trades? Do other companies know the buyer to be active in this specific area of trade?
Also look at the prices. if they are not market-related it spells danger.