Last Updated: October 18, 2026 by Pratham Agarwal, Rasp International
The short answer
Before you ship to a new foreign buyer, check five things: that the company exists in its home registry, who owns it, whether it pays on time, how it will pay you and whether a credit insurer will cover it. A business credit report answers the first four from records, and the Reserve Bank of India’s Master Direction on Export of Goods and Services, updated on 17 July 2026, gives you nine months from the date of export to bring the money home. A buyer who cannot pass these checks should not get open credit terms.
The rule that decides everything: the first shipment to an unverified buyer should move on a confirmed letter of credit or advance payment, never on open account.
Verified as on 18 October 2026 against the Reserve Bank of India Master Direction on Export of Goods and Services (updated 17 July 2026), the Dun and Bradstreet Business Information Report brochure for NSIC members (National Small Industries Corporation, 9 January 2025) and the NSIC ICT Digital Services brochure of 29 September 2023. Written by Pratham Agarwal, Founder, Rasp International.
5
checks before you ship to a new foreign buyer
9 months
from the date of export to realise export proceeds, under paragraph A.2 of the RBI Master Direction
30 days
Rasp International’s own target before any last date, including the nine month realisation date
Once a year
re-check your top buyers, and at once when an order size, bank account, delivery address or payment term changes
Why a buyer check comes before the first shipment
An export sale is a loan until the money arrives. Under paragraph A.2 of the RBI Master Direction, export proceeds must be realised and repatriated within nine months from the date of export, and the same direction tells exporters in paragraph B.11 that it is advisable to ensure due diligence on the overseas buyer. The exporter carries that risk from the day the container leaves until the bank credits the account.
Most buyer losses are not frauds. They are slow payers, firms in a weak position or firms whose stated size does not match their orders. A buyer check turns a name on an email into a company with a history, and it costs a fraction of one lost consignment.
The five checks before you ship
A report shows the record. A video call to the registered premises shows the buyer.| Check | What you are confirming | Where the answer comes from |
|---|
| 1. The company exists | Registered name, registration number, address and status in the buyer’s home country | The official company registry of that country, or the registry data inside a business credit report |
| 2. Who owns and runs it | Owners, directors and key employees, plus whether the person emailing you is one of them | The credit report’s history and corporate structure sections |
| 3. How it pays | Payment experience with other suppliers, past defaults, liens and bankruptcies | The credit report’s payment experience and public record sections |
| 4. How it will pay you | Advance, confirmed letter of credit, documents against payment or open account, plus which bank | Your purchase order and your Authorised Dealer bank |
| 5. Whether it can be insured | Whether ECGC will set a credit limit on the buyer and at what amount | Your ECGC branch |
What a business credit report shows
A business credit report is a one time report on another company, compiled by a credit information firm from registries, filings, trade references and public records. The Dun and Bradstreet Business Information Report, offered to NSIC members through the MSME Global Mart portal, lists these sections in its NSIC brochure of 9 January 2025: company summary, payment experience, banking information, finances, history, operations, special events, corporate structure and public record information. The brochure says the report helps a buyer of the report verify that a business exists and check its size and purpose, review the background of owners and key employees, identify payment patterns and assess the company with the D and B Rating.
| Section of the report | What to read it for | What should worry you |
|---|
| Company summary and history | Legal name, registration, year started, line of business, size | A company set up months ago, or a name that differs from the one on the purchase order |
| Corporate structure | Parent, subsidiaries and the people who control the firm | The person you deal with is not on the record, or the buying entity is a shell under a bigger name |
| Payment experience | How many days beyond terms the firm pays its suppliers | A pattern of late payment, or no trade references at all |
| Finances and banking | Turnover, net worth and the bank it uses | An order larger than the firm’s yearly turnover, or no bank on record |
| Public record and special events | Liens, bankruptcies, court cases, changes of control | Any insolvency event, or a recent change of ownership you were not told about |
| Rating | The report’s own risk indicator and its explanation | A rating the report itself flags as high risk |
When to order a report
- Before the first shipment to any buyer on credit terms, whatever the order size.
- Before you agree open account terms with a buyer you have only shipped to against advance or letter of credit.
- When an existing buyer suddenly doubles its order, changes its bank or asks for longer terms.
- When the buyer asks you to ship to a third party, a freight forwarder’s warehouse or a different country.
- Once a year on your top buyers, because the company you checked in 2024 may not be the company paying you in 2026.
What a credit report cannot tell you
A report is a record of the past, not a promise about the next invoice. It will not tell you whether the buyer intends to pay you, whether the person emailing you is who he says he is or whether the goods you ship will be accepted on arrival. For those you need the other checks: a video call to the registered premises, a reference from one of the buyer’s named suppliers and a first order on a confirmed letter of credit.
A report also goes stale. Filings in many countries run a year behind, and a firm that was sound in its last accounts can be in trouble by the time your container sails. Pair the report with the latest news on the company and a check of its registry status on the day you ship.
How Rasp International reads the report with you
Rasp International is an ISO 9001:2015 certified EXIM and DGFT advisory firm that has served 500+ exporters since 2019. For a new buyer we sit with you and go through the report section by section, match the registered name and address to your purchase order, check the people on the record against your contacts, read the payment pattern against the terms the buyer has asked for and set out the payment terms we would accept for the first three shipments. We then line up the ECGC credit limit request and the letter of credit wording with your bank. Depending on what the check needs, we either order the credit report for you or guide you to order it through the right channel. We keep a dated register for each client and set our own target at least 30 days before any last date, including the nine month realisation date. We make no promise that a buyer will pay. We sign an NDA and an SLA with every client. No client or buyer is ever named on this site.
Got a first order from a buyer you have never met?
Send us the buyer’s name, country and the payment terms asked for. Rasp International tells you which checks to run before you confirm the order and reads the credit report with you.
Where buyer checks go wrong
A report ordered after shipment is read while the goods are at sea.| Failure | What you see | What actually broke |
|---|
| Checked the brand, not the buyer | A well known name on the email, a different company on the purchase order | The buying entity was a new shell. The report on the brand said nothing about it. |
| Open account on the first order | Silence after delivery, then a dispute about quality | No letter of credit and no ECGC limit, so no one but the exporter carried the risk. |
| Report ordered after shipment | A report showing two liens and a late payment pattern, read while the goods are at sea | The check was done in the wrong order. The report costs the same before the shipment. |
| Nine months missed | Bank queries on an unrealised shipping bill | Paragraph A.2 of the RBI Master Direction sets nine months from the date of export; the exporter had agreed 270 day terms with a slow payer. |
| Changed bank details by email | A payment that never arrived, sent to a new account “updated” by the buyer | The bank change was not confirmed by phone on a known number. The report could not have caught this one. |
Honest limits
1
A report does not insure the sale
Only an ECGC policy with a credit limit on that buyer pays you if the buyer defaults.
2
A report cannot be bought for every company
Small private firms in some countries have no filings, and the report then holds little more than a registration record.
3
Rasp International does not grade buyers
We read the record with you and set the terms we would accept. The decision to ship stays with you.
Send the buyer’s name and country on WhatsApp
What Is Not Yet Notified, Checked on 18 October 2026
- The current price of a Dun and Bradstreet Business Information Report for NSIC members. Two NSIC price sheets in circulation do not match, so check with your nearest NSIC office before you order.
- ECGC’s current procedure and fee for setting a buyer credit limit. Check with your ECGC branch.
- Which company registries in your buyer’s country are free to search. Check the registry named in the credit report.
Frequently asked questions
How do I verify a foreign buyer before shipping from India?
Run five checks: confirm the company in its home registry, confirm who owns and runs it, read its payment history in a business credit report, fix the payment terms and the bank in the purchase order and ask ECGC for a credit limit. Ship the first order on advance or a confirmed letter of credit.
What does a business credit report on a foreign company show?
The Dun and Bradstreet Business Information Report described in the NSIC brochure of 9 January 2025 covers the company summary, payment experience, banking information, finances, history, operations, special events, corporate structure and public records, with a D and B Rating. It shows whether the firm exists, its size, its owners and how it pays.
How much does a credit report on a foreign buyer cost?
NSIC members can order Dun and Bradstreet reports through the MSME Global Mart portal at member prices, but the two NSIC price sheets in circulation do not agree, so Rasp International does not quote a figure. Ask your nearest NSIC office for the current price before you order.
How long do I have to receive export payment under RBI rules?
Nine months from the date of export, under paragraph A.2 of the RBI Master Direction on Export of Goods and Services, updated on 17 July 2026. Goods sent to a warehouse abroad with RBI permission get fifteen months. Your Authorised Dealer bank can extend the period for sufficient cause, so ask the bank early.
Is a credit report enough to ship on open account?
No. A clean report lowers the risk but does not insure the sale. Ship the first orders on advance or a confirmed letter of credit, ask ECGC for a credit limit on the buyer and move to open account only after the buyer has paid on time more than once.
Can ECGC cover a new foreign buyer?
ECGC sets a credit limit on each buyer under its policies, and claims are paid only up to the approved limit for that buyer. Apply for the limit before you ship and raise it before a larger order. The procedure and fee are set by ECGC, so check with your branch.
What if the buyer asks me to change the bank account for payment?
Call the buyer on a number you already hold, not one in the email, and confirm the change in writing from a known address. Changed bank details by email are the most common payment fraud and no credit report can catch them. Ask your own bank to verify the new account before you ship.
Do I need a buyer check for a buyer found on a government platform?
Yes. A listing on a trade platform confirms that a company registered there, not that it pays. Run the same five checks, order the credit report and keep the first shipment on secure terms. A platform listing can help you find the registry entry faster, but it does not replace the check.
Does Rasp International order the credit report for me?
Depending on what the check needs, we either order the credit report for you or guide you to order it through the right channel. We then read it with you section by section against your purchase order. We make no promise about the buyer’s conduct.
How often should I re-check an existing buyer?
Once a year for your top buyers, and at once when an order size, bank account, delivery address or payment term changes. Company records in many countries run a year behind, so a buyer that was sound at the last check may not be the firm paying you today.
Sources
- Tier 1. Reserve Bank of India, Master Direction on Export of Goods and Services, updated 17 July 2026, paragraphs A.2 and B.11: rbi.org.in.
- Tier 2. National Small Industries Corporation and Dun and Bradstreet, Business Information Report brochure for NSIC members, 9 January 2025 (PDF held by Rasp International; order page on msmemart.com).
- Tier 2. NSIC ICT Digital Services brochure, 29 September 2023, listing the Dun and Bradstreet credit and credibility reports for MSMEs: nsic.co.in.
- Tier 1. ECGC (the government owned export credit insurer), buyer credit limits under its export credit insurance policies: ecgc.in.
This is general guidance. Rules change. Check the current order or notification, or speak to us, before you act.
Related: Buyer research service | UP ECGC premium reimbursement | Export to the UAE from India | How we work