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Vendor due diligence checklist

Vendor due diligence checklist

Evaluate potential vendors before entering business relationships with this checklist. Compare candidates objectively and identify hidden risks.

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The Lumiform application helps frontline teams uphold internal standards effortlessly.
  • Customize this template or build your own
  • Fill out templates via mobile app
  • Assign and track corrective actions
  • Get reports and analyse your data
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Vendor due diligence checklist

Evaluate potential vendors before entering business relationships with this checklist. Compare candidates objectively and identify hidden risks.

Use this template with Lumiform

The Lumiform application helps frontline teams uphold internal standards effortlessly.
  • Customize this template or build your own
  • Fill out templates via mobile app
  • Assign and track corrective actions
  • Get reports and analyse your data
Prices start from ░░░ per month
Book a demo
Learn more
or Download template as PDF

Make informed decisions when selecting third-party partners with the help of this vendor due diligence checklist. The template focuses on three essential evaluation areas: compliance status, financial health, and past performance—giving you a well-rounded picture of vendor reliability.

Ernst & Young research shows that operational risk has become the top factor companies consider when monitoring subcontractors. When onboarding new vendors for critical services, this checklist provides a structure for documenting your assessment process and justifying your decisions.

Related categories

Preview of the template
Compliance verification
Vendor has valid business licenses
Vendor is in good standing with regulatory bodies
Vendor has appropriate industry certifications
Financial stability
Vendor has sound financial statements
Vendor has adequate cash flow
Vendor has low debt-to-equity ratio
Performance history
Vendor has positive references from existing customers
Vendor has a track record of on-time and on-budget delivery
Vendor has demonstrated ability to meet service level agreements

Frequently asked questions

How can I customize this vendor due diligence checklist for my specific industry?

You can add industry-specific sections like data security requirements for tech vendors, quality control measures for manufacturers, or regulatory compliance items unique to your field. Keep the core structure intact while adding three to five questions that address risks specific to your business context.

What documentation should I request from vendors to complete this checklist accurately?

Request financial statements from the past 2-3 years, copies of relevant certifications and licenses, references from current customers, and proof of insurance coverage. For critical vendors, also consider requesting business continuity plans and information security policies to verify their resilience.

What are effective ways to verify a vendor’s compliance status when completing this checklist?

Beyond simply requesting documentation, verify credentials through official sources when possible. Check business licenses through state databases, confirm certifications with issuing bodies, and research regulatory actions through public records. This verification process helps identify vendors who may exaggerate their compliance status.

What if a vendor refuses to provide information needed for this checklist?

Consider their reluctance a potential red flag, especially regarding financial information or performance history. Explain how the information helps establish a transparent relationship. If they still refuse, document this as a risk factor and determine if you’re comfortable proceeding with incomplete information.

This template, developed by Lumiform employees, serves as a starting point for businesses using the Lumiform platform and is intended as a hypothetical example only. It does not replace professional advice. Companies should consult qualified professionals to assess the suitability and legality of using this template in their specific workplace or jurisdiction. Lumiform is not liable for any errors or omissions in this template or for any actions taken based on its content.