1. Authority cannot be traced
A professional introduction should lead to a party whose role can be explained and verified. Long chains of sub-mandates, conflicting titles and reluctance to identify the principal create uncertainty. Ask who owns the product, who is authorised to negotiate, and what evidence supports that authority. A document carrying a company name is not enough when the person presenting it cannot be linked to the company.
2. Proof is offered before the counterparty is known
Unsolicited product documents can create false confidence. Before relying on an allocation letter, tank document or inspection report, confirm the identity of the sender, the issuing organisation and whether the document can be verified independently. Genuine-looking paperwork should never replace counterparty checks.
3. The procedure keeps changing
Commercial procedures may be negotiated, but unexplained changes after acceptance are a warning. Watch for new payment steps, new beneficiary accounts, unexpected tank-extension demands or additional intermediaries. Record the agreed sequence and require written reasons for material changes.
4. Advance charges appear before verification
Requests for registration, allocation, documentation, logistics or access fees require careful scrutiny. A charge is not automatically fraudulent, but its purpose, beneficiary, contractual basis and refund position must be clear. Never allow urgency to replace independent verification.
5. Banking details do not match the contracting party
Payments should follow the contract and an independently verified banking path. A last-minute instruction to pay a personal account, unrelated company or newly introduced third party increases risk. Confirm changes through established contact channels and, where appropriate, bank-to-bank communication.
6. Inspection cannot be independently arranged
Inspection terms should identify the location, responsible party, recognised inspector and conditions for access. Vague promises of a dip test or physical verification are not enough if the buyer cannot confirm the facility, appointment and authority independently.
7. Pressure replaces answers
Pressure to sign, issue an instrument or make payment before reasonable questions are answered is itself information. Credible counterparties should be able to explain their authority, documents and procedure. A delayed genuine transaction is usually less costly than a fast transaction built on assumptions.
Simlar Energy supports structured petroleum enquiries for qualified parties. We facilitate introductions and procedure alignment, while every principal remains responsible for independent legal, financial, title, sanctions and operational due diligence.