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How a textile company from Arizona verified a counterparty in 30 minutes, saving $150,000

Verification of potential business partners or competitive companies usually takes a significant amount of time. It is necessary to find performers to conduct a paid audit, conclude a cooperation agreement, and build an interaction strategy. Only after that can the outsourcing company start its work.

Another option is to create your own staff to verify contractors. In this case, things will go faster, but you will have to pay a salary to analysts and “due diligence” staff members are expensive. On the Glassdoor website, you can see that in the US, analyst’s salary ranges from $42.000 to $153.000 a year. The average salary is also a sizable, $97.500. Business owners face the dilemma of choosing the correct option.

This case is demonstrating how companies from Arizona with a similar problem managed to find a quick and relatively inexpensive way to verify their future partners.

The source data

Company Information: Company A (we were asked not to publish the real name of the organization) is registered in Phoenix, Arizona. Their primary activity is the wholesale of plaids, bedspreads, bedding, and curtain fabrics. Additionally, the company is engaged in the sale of curtain hardware.

Problem 1: An organization cannot optimize the scaling process of their business because building relationships with new counterparties is a very slow process.

  • Search for an outsourcing company to audit potential partners (proposal monitoring, market research, business analysis, decision making) - 4-7 days. The option with a permanent outsourcer is not relevant yet because there were no suitable contractors who were ready to take on the service of the company on a regular basis.
  • Legal implementation of cooperation, signing of an agreement, introduction period of an executor - 3 days.
  • Counterparty verification by outsourcing company, analysis of results, report preparation - 5-10 days.

In total, a paid audit would take 15-20 days. All this time, the potential partner had to wait. Not everyone had time to wait, so Company A was losing money.

Problem 2: To speed up the process of interaction with new organizations, Company A hired two analysts. This reduced the verification period from 20 to 10 days, but another problem arose: additional costs. Keeping the specialists would cost $12,600 per month (with a salary of 6.3 thousand each) or $151,200 per year.

Objective: To optimize cooperation with counterparties and reduce costs on finding new ways to market finished products.

Tasks: Verify the counterparty with minimal money and time costs.

Situation: Company B contacted Company A to order a large batch of plaids and curtain fabrics. Company A decided to conduct an internal audit using the Datapo service, instead of a traditional paid audit.

What did we do?

As an experiment, they bought a trial package of Datapo for $79. Using the service, it was possible to solve the following problems:

  1. Legal details verification. We noticed that the company has been operating since 2010. Eight years on the market is a good run. The organization is registered in Arizona, so you could personally visit the office if something happened. Most importantly, the company’s status was identified by the system as "Good." Therefore, it had credibility.
  2. Company report verification. Over the past three years, the company's turnover amounted to $3.2 million. This meant that Organization B was actively using its money, looking for new ways to grow its business. The company did not stop in development, so cooperation with it could be useful. Additionally, we looked at information in other financial statements: profit and loss before tax, loss of profit, cash flow.
  3. Company affiliate verification. Private and public organizations were among the clients of Company B. 943 partners in 8 years is a good result which means that this company can be trusted.
  4. Debt information analysis. The company didn’t have outstanding loans. Two years ago, Company B pledged three corporate vehicles and a Caterpillar CT630LS tractor as collateral. At the time of verification, all debts were successfully paid off.
  5. Lawsuit verification. There were no lawsuits against the company. Company B has been a claimant four times, and all four times court ruled in favor of the claimant.

The verification process of the information above took only 30 minutes. About the same amount of time was needed to organize and study the outcome.


In a few hours, Company A managed to uncover all the details about its potential partner: Company B. Top managers carefully studied the reports and decided to conclude a cooperation agreement on the same day.

The verification was conducted without the involvement of outsourcers and a special staff of analysts. Savings in solving the problem throughout the year amounted to $151,200, since a department of two specialists in the field of due diligence cost the company monthly $12,600.

Details of the case are given in the comparative table below.


ResourcesOwn departmentOutsourcingDatapo Verification
Money$151 200 annually790$ annually for basic package
Time7-10 days15-18 days30 Minutes

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