How to Avoid Paying a Supplier Who Does Not Exist

You are standing in your shop, maybe in Computer Village or a busy market like Balogun. A customer is waiting for their change. Another is asking for a product you just sold. Then, someone walks up and says they supplied you goods last week and you haven't paid. But you don't remember them. You don't remember the goods. What do you do? This is how you can stop it before it even starts.

How to Make Sure You Know Your Suppliers

It is easy for someone to walk up to your stall and claim they supplied you something. They might show you a fake receipt or just rely on you being busy. The truth is, if you don't have a clear system, you can get tricked. The first step is simple: know who is supplying you. Every time you receive goods, ask for details. Who brought them? What exactly did they bring? How much does it cost?

For every single supply, you need proof. This could be a simple handwritten note that says: "Received from [Supplier Name], [Item Name], [Quantity], [Price]". Make sure the supplier signs it. If they refuse, that is a red flag. You should also try to get their phone number. For larger supplies, ask for a proper invoice with their company name and VAT number if they have one. This helps you know who you are dealing with. This is part of having good business records that actually help you.

Why You Need Proof of Every Payment

If you pay cash, it is even easier for someone to lie. They might say they were paid half the amount when they were paid the full amount. Or they might say they were never paid at all. This is why you need proof of payment. For cash payments, get a signed receipt from the supplier. For bank transfers, keep the transfer alert. This is your evidence.

If a supplier claims you owe them, you can show them the receipt or the transfer alert. If they still insist, you have proof. This is crucial. Imagine you are in a market like Oshodi Market where things move fast. It's easy to miss details. But with clear records, you can avoid trouble. A fake supplier will find it hard to argue with a signed receipt or a bank statement showing the money left your account.

Use a Unique Number for Every Order

To avoid confusion and potential fraud, assign a unique number to every order you place with a supplier. This could be a simple order number like "ORD-001", "ORD-002", and so on. When you place an order, tell the supplier this number. When they deliver, make sure the number is on their invoice or receipt. This way, if someone claims you owe them for an order, you can check your records for that specific order number. If the number doesn't match any of your orders, you know it's a fake claim.

This helps you track everything. You know exactly what you ordered, when you ordered it, and who you ordered it from. It makes it much harder for a ghost supplier to appear. Having a system like this is key to tracking sales and supplies without the stress of constant writing.

Verify Supplier Details Before You Pay

Before you send money to any supplier, take a moment to verify their details. If they give you an account number, check if it matches the name they gave you. If you are paying by transfer, make sure the account name on the alert matches the supplier's name or company name. If there's a mismatch, ask them to correct it. A genuine supplier will not have a problem with this. A fake one might try to rush you or give excuses.

For new suppliers, it's even more important. Ask them for their CAC registration if they are a company. If they are an individual, ask for their phone number and maybe even their BVN if you are dealing with large amounts (though be careful with sharing sensitive information). Building trust takes time, and verifying details is part of that. It's like when you need to hire a professional, you want to be sure they are real, just like finding a trusted electrician.

Use Digital Tools That Make Records Automatically

Let's be honest, when the shop is busy, writing down every single transaction is the last thing on your mind. You are focused on making sales. This is where technology can help. Tools that work inside WhatsApp, like TrustAm, make collecting payment the same as creating a record. When a customer pays you through TrustAm, the sale is automatically recorded. No need to write it down later when you are tired.

For your suppliers, you can also use TrustAm. When you pay a supplier, you can record it instantly. Just send a voice note or a photo of the receipt. TrustAm then keeps track of all your payments and sales. This means you always know who you paid, when you paid, and what you paid for. It makes it impossible for a fake supplier to claim they weren't paid because you have a digital trail for everything. This is how you can easily track sales without writing and also keep accurate records of your expenses.

What to Do If a Supplier Claims You Owe Them

If someone comes to you claiming you owe them money for supplies you don't remember, stay calm. Do not pay immediately. Ask them for details: When did they supply? What did they supply? How much is owed? Do they have a receipt or invoice?

If they show you a receipt, check it carefully. Does it have your shop name? Is it dated correctly? Does it match any orders you placed? If they give you an account number to pay, verify the account name. If they claim they were paid only part of the money, check your records for that specific transaction. Look for order numbers, dates, and payment proof. If you used TrustAm, you can quickly check your payment records. If you paid by transfer, check your bank app. If you paid cash, check your signed receipts. If you cannot find any record of the supply or payment, politely explain that you have no record of the transaction and cannot pay without proof. If they become aggressive, do not engage further. You can report such incidents to your market leaders or the police if necessary.

Protecting Yourself from Fake Alerts

One common trick is a fake alert. A supplier might claim they sent money to your account, but you didn't receive it. They might show you a fake alert. With TrustAm, when money lands in your account, you get an instant stamped receipt that shows the payment is confirmed. This kills fake alerts because the receipt is only generated when the money is actually there. For cash sales, you also get a stamped receipt. This ensures that both you and the customer have proof of the transaction, making it very hard for anyone to claim otherwise. This is part of how TrustAm helps you avoid common shop fraud.

Summary: Your Records Are Your Shield

The best way to avoid paying a supplier who does not exist is to have a strong system for tracking your supplies and payments. This means:

• Always ask for and keep proof of supply from every supplier.
• Demand clear invoices or receipts for all goods received.
• Use unique order numbers for every transaction.
• Verify all payment details before sending money.
• Keep digital records of all payments made, especially for cash transactions.
• Use tools that automate record-keeping when you get paid, so your books write themselves.

By following these steps, you build a shield around your business. You protect yourself from fraudsters and ensure your money is used only for genuine business transactions. This helps you know your real profit and manage your business better, just like working out your profit per product.