Dealer and distributor onboarding: verification steps
A strong dealer and distributor network is how many companies reach customers. It also exposes the company to risks: unpaid credit, grey-market sales, misuse of the brand and partners that are not what they say. A clear verification routine at onboarding keeps the network healthy.
Why it matters
Dealers receive stock on credit and talk to customers in your name. Problems often show up only after money is lost. Fixing a bad onboarding is far costlier than a few extra checks at the start.
The checklist
- Who they are: the owner or partners' identity, with a live face match.
- Business existence: registration, shop or office address, board and premises.
- Registrations: GST, PAN, trade licence and other documents the business needs.
- Bank account: name matching the business, and a cancelled cheque or statement.
- Financial standing: turnover, other brands, past dues and credit history.
- Premises and capacity: storage, staff and vehicles.
- References: other suppliers and customers, called by you.
- Disputes: known cases or complaints involving the business or its owners.
- Agreement: written terms on territory, pricing, credit and brand use.
Ongoing monitoring
- Review sales patterns and payment behaviour
- Revisit when ownership or address changes
- Check for sales outside the agreed territory
- Respond quickly to customer complaints
Red flags
- A newly formed business asking for a large credit limit
- Premises that do not match the claim
- Owner unwilling to meet or show documents
- A bank account in a different name
Start small, grow with trust
Give new partners a modest credit limit and a short probation, then raise it as payments and sales come in on time. Clear written terms and regular reviews protect both sides and keep honest partners motivated.
How Praman helps
Praman by SatyaSakshi lets you meet the people and see the business on a recorded WhatsApp video call. The owner shows ID and completes a face match and liveness check, and shows the premises with location and time. GST, bank-account name and court-record checks can be added where enabled, and a reviewer approves the report.
Frequently asked questions
Why verify dealers and distributors?
They handle your stock, money and brand. A weak partner can cause losses and damage your reputation.
Is a visit necessary?
A visit is best for large partners, but a live video of the premises with location and time is a good start.
How often should checks be repeated?
At onboarding, at renewal and when something changes, such as ownership or credit limit.
Related: how Praman handles this for businesses · all instant checks
Make verification simple with Praman
WhatsApp link, AI or live video call, instant ID, vehicle, business and court checks, and one evidence report. Built by investigators at SatyaSakshi.
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