A buyer credit check with FundRaksha Trust looks at three things a supplier can verify: whether the buyer's GSTIN is active and matches the entity you are dealing with, whether the buyer files GST returns on time (a strong signal of discipline and cash flow), and whether the buyer is a party to court cases, especially recovery suits and cheque bounce complaints by other suppliers. Use it before extending credit, before increasing a limit, and when a buyer's payments start slipping.
Three checks every supplier should run
1. GSTIN and identity
Confirm the GSTIN is active, that the registered legal name matches the entity on your order and invoice, and that the registered address and principal place of business make sense for the volume being ordered. Many bad debts begin with a trade name that turns out to belong to nobody, or a GSTIN that was cancelled months ago.
2. Filing record
A buyer who files GSTR-1 and GSTR-3B on time every month is running an organised business with cash to pay tax. One who files late, in batches, or not at all is either disorganised or short of cash. Either is a credit risk. The pattern over 12 to 24 months tells you more than a balance sheet.
3. Court cases
Recovery suits, Section 138 complaints, insolvency petitions and arbitration enforcement actions against the buyer are public. A buyer with several supplier complaints pending is already not paying someone; you will be next.
How FundRaksha Trust works
- Enter the buyer's GSTIN, PAN or name at trust.fundraksha.com.
- Trust returns the entity details, GSTIN status, filing history and court-case summary in one report.
- Decide: supply on credit, supply on advance or with a mandate, reduce the limit, or decline.
- Set a re-check reminder for existing buyers, so a change in filing behaviour or a new case is flagged.
Trust is built for the supplier's decision, not for a bank's. It answers the question "should I ship this order on 45-day credit?", quickly enough to be used on every new account.
Reading the signals
| Signal | Meaning | Action |
|---|---|---|
| GSTIN active, filings on time, no cases | Low risk | Normal credit terms; reminders through Collect |
| Filings late by weeks, repeatedly | Cash-flow strain | Shorter terms, lower limit, mandate |
| GSTIN suspended or cancelled | Compliance or closure risk | Advance payment only, verify entity |
| One or more Section 138 complaints by suppliers | Already defaulting | Decline credit; advance or LC only |
| Insolvency petition filed or admitted | Severe | Do not supply on credit; file claim if owed |
No single signal is conclusive, and the report is information, not advice. But suppliers who run these checks carry far smaller over-90 columns.
Prevention and recovery, one company
FundRaksha offers Trust for the decision, Collect for the follow-up and Legal for the exception. A buyer flagged by Trust can be put on advance or mandate terms through e-mandate collections. A buyer who slips despite a clean report can be escalated to Legal for a notice within 24 hours, at 30% on recovery only. And when a recovery case starts, the Trust report is the first thing our advocate reads to judge whether the buyer can pay.
Who should check
Any business that supplies on credit: manufacturers appointing dealers, distributors onboarding retailers, service firms signing enterprise clients, startups taking their first large customer, exporters checking a foreign buyer's Indian affiliates. Read accounts receivable collection for how Trust fits a full receivables process, and payment recovery for what happens when prevention fails. If you already have an unpaid buyer, book a free consultation.
Last reviewed: 2026-10-08. Information for Indian businesses; not legal advice.