“We’ll sort the paperwork later”
Probably the most dangerous last words in any cross-border deals.
In business, especially when you’re dealing with partners or suppliers overseas, skipping due diligence isn’t about working faster. It’s about taking a risk you may not even see it coming.
and for SMEs, that risk often comes with a price that feels heavier than expected – financially, operationally and sometimes, reputationally.
Because cross-border isn’t just about paperwork. It’s about protecting your business before the real problems even show up.
What does lazy due diligence looks like?
Most of the time, it doesn’t even look wrong. It looks like:
- trusting a handshake deal
- skipping background checks
- assuming their website = legit business
- relying on verbal referrals
- not checking for sanctions, lawsuits or ownership structure
It all sounds harmless, until it’s not.
The Real Cost of Not Checking Properly
“Lazy due diligence doesn’t show up in your expenses. It shows up later, when it’s too late”
For SMEs doing cross-border deals, the hidden cost could be:
- frozen payments or assets
- breach of international laws
- regulatory fines (even if unintentional)
- getting caught in fraud or scam networks
- damaging your brand, locally and globally
Why SMEs fall into this trap
- limited resources
- rushing to close deals
- no internal compliance expertise
- trusting too fast
- not knowing what to look for (or where to start)
How SMEs can fix this (without breaking the bank)
✓don’t just google
✓check for sanctions and ownership risks
✓ask for documents and verify them independently
✓make due diligence a process, not a one-time tasks
✓when in doubt, get help from external investigative consultants (like us), to fill in the gap
✓if you unsure about a company or investment offer especially when it sounds too good to be true, always check public warning lists like the Securities Commission Malaysia Investor Alert List.
Cross-border deals can open doors — but they can just as easily open risks.
And that so-called “paperwork”? It’s not the boring part. It’s the part that protects everything you’ve worked hard to build.
Because proper due diligence isn’t expensive. Recovering from mistakes is.
At the end of the day, the smartest businesses aren’t fast because they skip steps — they’re fast because they know exactly what to check, and what not to miss.
