Trust is the currency of B2B steel trade
Every year, buyers lose crores because they wire advances to sellers who never dispatch material - or dispatch under-spec, over-priced, or short-weight consignments. Here is a five-minute checklist that catches most fraud before it happens.
1. GSTIN and PAN verification
Ask for the GSTIN. Verify it on the GST portal, check filing status, principal place of business, and constitution. Any mismatch with the invoice bank details is a red flag.
2. Physical yard visit or third-party inspection
For orders above a few lakhs, insist on either a site visit or an SGS/Intertek/BV inspection before dispatch. Many verified sellers on The Loha Bazaar will accommodate this.
3. Payment structure
Avoid 100% advance. Standard trade is 20-30% advance, balance against LR (lorry receipt) copy, and final payment on unloading and weighment verification.
4. Reference checks
Ask for two recent buyer references and actually call them. A genuine seller will provide them without hesitation.
5. Bank name-match
The company name on the invoice, the GST registration, and the beneficiary bank account must all match exactly. Any deviation, even a spelling difference, is worth pausing on.
The Loha Bazaar verifies every seller before onboarding and keeps a public rating trail so you can transact with confidence.