Every deal starts with trust, but in business trust has to rest on facts, not on promises in a chat thread. At LPF we have supported deals for small and mid-sized businesses since 2018, and we keep seeing the same pattern: most of the trouble — failed deliveries, prepayments that never come back, lawsuits over unpaid debts — could have been spotted before the signature. All it took was an hour spent checking the partner first.

Vetting a counterparty is not about distrusting a particular person. It is ordinary business hygiene, the same as counting your change or reading a contract to the end. You should know who you are dealing with: whether the company actually exists, whether the person in front of you may legally sign, and whether the partner’s business is drowning in debts and court cases.

Below is a step-by-step guide you can follow on your own. And where a professional eye on the contract or a disputed situation is needed, we are right beside you.

Step 1. Confirm the company is real

The first and most important thing is to make sure the counterparty is not a shell on paper. In Ukraine, data on companies and sole proprietors is public, so a basic check can be done for free using the registration code.

What to look at:

  • Registration status. The company should be active and not in the process of being wound up or declared insolvent.
  • Date of registration. A firm created yesterday that is asking you for a large deal with prepayment is a reason to slow down.
  • Declared activities. Its main line of business should match what it is selling you or being hired to do.
  • Registered address. A mass-registration address that hosts hundreds of firms is a weak signal, but worth weighing together with the rest.

Step 2. Check who is allowed to sign

Even a genuine company is not bound by a contract signed by someone without authority. This is one of the most common reasons deals fall apart later in court.

What to clarify before signing:

  • Who the director is according to the registry — that person signs without any extra document.
  • If someone other than the director signs — ask for a power of attorney and check that it has not expired and actually covers this transaction.
  • Match the details to the ID of the signer: the name in the contract, in the registry and on the identity document must be the same.
  • For large amounts — check whether the company’s charter requires approval from its owners; without it, the deal can be challenged.

Step 3. Assess financial health and debts

A company can exist and have a lawful director, yet still be unable to pay. So the next step is to understand whether the partner can actually meet its obligations and is not dragging a trail of problems behind it.

We pay attention to things like:

  • Court cases. A pile of lawsuits over unpaid debts or broken contracts is a direct risk signal.
  • Enforcement proceedings. If money is already being collected from the partner by force, your turn may never come.
  • Tax standing. Debts to the budget and VAT-payer status matter if you are counting on a tax credit.
  • Public reputation. Reviews, news mentions and complaints from other businesses are not proof, but useful background.

Step 4. Keep evidence and build protection into the contract

A check is only worth something when its result is recorded and the terms make it into the contract itself. If it ever comes to a dispute, it is the documents, not verbal promises, that will work for you.

What is worth doing:

  • Save extracts and screenshots of the registries as of the deal date — proof that you acted in good faith.
  • Spell out in the contract clear deadlines, payment order, liability for failure and the terms for refunding a prepayment.
  • Avoid full prepayment to an unfamiliar partner without security — break the payment into stages.
  • Fix the channels for communication and document exchange, so you never have to prove later what you sent and to whom.

When to bring in a professional

You can absolutely run the basic registry check yourself, and that alone removes most of the smaller risks. But there are situations where the cost of a mistake is high: a large amount, a long-term partnership, a complex payment scheme, or property involved in the deal. Here it pays to have a fresh, professional eye on both the contract and the results of your check.

At LPF we keep legal work right next to accounting and the numbers: we vet counterparties thoroughly, read the contract for traps, and advise which safeguards to build into a specific deal. Where notarial certification is required, it is carried out by our partner notary, while we guide the process from start to signature.

If you are getting ready for a deal and want to sleep soundly after signing, get in touch. We will look at your situation, point out what deserves attention in your particular case, and help you sign a contract that protects you, not just the other side.