A finance team's supplier evidence review connects a proposed purchase with the exposure it creates. The lowest quoted price may require a large deposit, foreign-currency payment or a long wait before the goods generate cash. Those conditions belong in the assessment alongside delivery evidence.
Trace the payment and delivery obligations
Confirm the supplier's legal identity, invoicing entity and verified payment instructions through an established contact. Record the currency, deposits, milestones and credit terms in the current offer. A request to change bank details should follow the business's verification process rather than be accepted solely from an email.
Ask what evidence supports each payment milestone: an approved sample, an inspection record, dispatch documents or acceptance of a service output. Determine which evidence your team can review and which depends on a third party. Keep delivery acceptance separate from a document that merely requests payment.
Assess the effect on cash
Model the timing of payments, expected receipt and customer collection using the order assumptions. Include freight, inspection, storage and other relevant costs. Review what happens if delivery is delayed or fewer units are saleable than expected; neither outcome is captured by the invoice total alone.
Record the approved exposure, exceptions and responsible decision-maker. Credit reports or financial statements can inform a review, but their date and scope matter. Reassess material changes to payment terms or order size rather than treating an earlier supplier approval as permanent.