Now, more than ever, it is vital that buyers and sellers in every industry feel safe and secure when doing business – much of which is happening online now thanks to the local lockdown regulations, and the increasing need for business to be done virtually, often with new suppliers that have not been dealt with before.
Truzo recently stepped in and came to the rescue of some clients in the fuel industry, predominantly in the diesel downstream side, where we were able to save them from potential scams of close to R40 million Rand, and this is how we did it…
Buyers were being promised by so called ‘suppliers’ that they had the product they were looking for, meeting their exact needs. Unfortunately, in most cases, the product was either not to the specification or completely non-existent all together. Buyers then have either lost their money as the supplier had completely vanished or would be given the run around until the money was eventually returned months later.
The diesel industry is extremely cash sensitive with buyers losing out on other deals while waiting for the money to be returned, if they are lucky, and businesses experience strain either having lost a large amount of money, or sitting with product they cannot sell.
Then there is the flipside where sellers who were promised to be paid upon delivery were finding themselves left with product by buyers who either had no funds to pay for it, or by buyers who all of a sudden had a change of heart. Something all business should avoid, especially during these stressful economic times. Their choices here are limited and all come at a cost. They can sell the product at a cheaper price to move it quickly, store it at an extra cost until they have found a new buyer or return it to the major players. Not only is this a financial strain, but also a knock on the reputation of honest businesses.
The problem that needed to be solved was how to handle the buyers needing a proof of product from the sellers, while the sellers needed a proof of funds from the buyers. Normally, clients would have to get banks involved to negotiate this for them, making the deal cost much more than it should. Truzo was the perfect solution for both buyer and seller.
Truzo suggested that a buyer create his transaction on Truzo, deposit the money into the Truzo Trust Account (proof of funds) and then waited for the ‘supplier’ to produce the product documents or physically deliver on site. That way, if the deadline to supply him went by with no product delivery the buyer would still have all his money, safe and secure in the Truzo Trust Account and could either look for a new reputable supplier or request his money back with no charge.
The buyer was so thankful that he had not lost any money during the process that he introduced a number of his business partners to Truzo, and with that Truzo was able to sift out the real buyers and sellers from the scammers. Buyers and sellers are ensured safe and secure transactions every time when using Truzo without the risk of being scammed.
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