Starting a business means venturing into a business relationship with a partner. You are relying on them with your hard-earned cash, your image, and the success of your business. That is why it is always crucial to carry out research on any potential or existing business partner before deciding.
Cambodia particularly is known to present some levels of business structure mystery, and therefore a business partner investigation is even vital. However, there are also many fraudulent people and companies in Cambodia and they mainly aim at inexperienced foreign counterparts.
Here are some dangers of not conducting a business partner investigation in Cambodia:
- Fraud: It is rather an alarming fact that fraud is widely spread and has a tremendous impact on Cambodia, and the business partners of the company are not immune to the fraudulent schemes and scams. The fake partners may provide you with fake documents, create fake websites, and apply pressure to lure you into a partnership with them.
- Corruption: Other vices prevailing in Cambodia include corruption, which one can’t easily escape when engaging a business associate. Dishonest partners can request kickbacks or bribes before you can access their services or products or they can use their connection and influence to favor you with the authorities.
- Compliance issues: Cambodia now has many laws and regulations that must be followed by every business, if you enter a partnership with a partner who is not following these laws and regulations you find yourself on the wrong side of the law facing fines, penalties, and other legal woes.
- Financial losses: Particularly where the business partner is not financially strong, you can end up losing a lot of money if you are involved in partnership commerce. This is especially so when you directly commit capital to the partnership or offer funding to the partner.
- Reputational damage: High risk also arises in a selected business partner to your business who may bring in reputational risk whereby your business could receive a poor brand image if associated with an unsuitable business partner. There are situations when your customers learn you cooperate with a fraudulent, corrupt, or incompetent partner and they will not want to continue cooperating with you or your company.
An obvious question, which could be asked here is: How can a business partner investigation help?
A business partner investigation can help to protect your business from the dangers of working with unreliable partners by:
- Identifying fraudulent partners: A business partner investigation can be useful to such fraud partners because it would help review the papers of the partners, evaluate their backgrounds, and search for discrepancies.
- Exposing corruption: A business partner investigation will help get rid of corrupt business partners while offering substantive evidence of corruption that might ail a business.
- Ensuring compliance: A business partner investigation can help increase compliance with Cambodian laws and regulations as they will spot possible compliance risks.
- Assessing financial risk: Business partner assessment is an effective tool in determining the business partner’s financial risk by analyzing his/ her financial statements and establishing any financial issues.
If one has to select a service provider for conducting business partner checks in Cambodia, it is necessary to select a company that has reasonable experience behind it. There are several ways to find a qualified service provider, including:
- Asking for referrals: People should be asked for recommendations to business partner investigation services from friends, relatives, and co-workers.
- Searching online: Go to the internet in search of business partner investigation service providers operating in Cambodia. While reading the reviews, one needs to consider the experience, whether the company is qualified to do the particular job, and their previous track record.
- Contacting government agencies: relevant government departments may provide this list, including but not limited to the Ministry of Commerce.
Investigations on business partners are inevitable when doing business in Cambodia. Thus, by relying on a competent service provider, a business gets the information and experience that will help it avoid the dangers of cooperation with unscrupulous partners.
Do not let the situation reach a boiling point before following the business partner investigation procedure. Thus, save your business and prospects and coordinate with a competent service provider.
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