From Licence Approval to First Trade: An Operational Readiness Checklist

Licence approval is an important milestone, but it is not the same as being ready to complete a petroleum transaction. Before the first trade, the wholesaler should confirm that the legal records, suppliers, logistics, insurance, customer processes and financial controls are working together.

A structured readiness review reduces the risk of accepting an order that the business cannot fund, source, deliver or document properly.

1. Confirm the Licence and Company Records

Before trading, ensure that the licence has been issued and that the legal entity conducting the transaction is the licence holder.

Confirm:

• the issued wholesale licence certificate;
• the correct company name and registration number;
• current directors and authorised representatives;
• registered and operating addresses;
• tax and banking records;
• the official company email domain and contact details; and
• any licence conditions or outstanding post-approval requirements.

Store these records in a controlled licence master file.

2. Verify the Supplier and Product Source

Do not accept a customer order until there is a credible product source. Verify the legal supplier, licence, representative authority, depot or loading point and upstream product chain.

Document:

• the supplier onboarding approval;
• the relevant licence and company checks;
• the product specification;
• the price and validity period;
• the allocation or availability evidence;
• the loading and release process; and
• the payment instructions.

Where the supplier is unfamiliar or the transaction is material, use independent verification.

3. Finalise Storage and Depot Arrangements

Understand exactly where product will be held or loaded and who has authority at the facility.

Confirm the facility, operator, account holder, product, capacity, nominations, handling fees, loading hours and release documentation. If the business uses shared or third-party storage, the conditions of access should be clear.

Application-stage storage evidence should not be assumed to prove product availability for the first transaction.

4. Confirm Transport and Delivery

Appoint transporters through a documented process. Review company records, vehicle suitability, driver controls, insurance and the operating procedure.

Before dispatch, establish:

• who appoints the transporter;
• the collection and delivery points;
• vehicle and driver approval requirements;
• loading-document responsibilities;
• risk-transfer terms;
• proof-of-delivery requirements;
• shortage and contamination procedures; and
• communication and escalation contacts.

5. Confirm Insurance and Risk Allocation

Insurance should reflect the actual operation. General business cover may not address product in transit, environmental exposure, public liability, vehicle risk or losses arising from contamination and quantity disputes.

Review the policy schedule, insured entity, activities, limits, exclusions and expiry date with a qualified broker or adviser.

Contracts should also state when ownership and risk pass between the supplier, wholesaler, transporter and customer.

6. Establish the Customer Onboarding Process

Verify the customer before offering product or credit. Confirm the legal entity, representatives, delivery location, intended use, payment capacity and banking information.

The customer file should include:

• company and contact records;
• credit application and approval;
• purchase authority;
• delivery-site details;
• contract or approved terms;
• credit limit and payment terms; and
• the applicable own-consumption undertaking where required.

7. Test the Transaction Economics

Calculate the full transaction before quoting. The margin must cover more than the difference between supplier and customer prices.

Include:

• product cost;
• transport and tolls;
• storage and handling;
• insurance;
• finance and payment timing;
• tax;
• quantity risk;
• bad-debt exposure;
• administration; and
• the required net margin.

Model the cash-flow timing. A profitable sale can still fail if supplier payment is required long before the customer pays.

8. Implement Banking and Payment Controls

Separate supplier creation, transaction approval and payment release where possible. Use independent bank verification and dual approval for material payments.

Changes to bank details should stop the payment until confirmed through a trusted contact channel. Keep proof of the verification.

9. Prepare the Transaction Documents

Use controlled templates for quotations, purchase orders, supply agreements, invoices, delivery notes and reconciliations.

The documents should identify the correct legal parties and state the product, quantity, price, delivery point, delivery period, payment terms, risk transfer, quality standard and evidence required.

Do not rely only on informal messages for material commitments.

10. Establish Product, Quantity and Dispute Controls

Decide what evidence will be used to prove product specification, loaded quantity and delivered quantity. The process may include certificates, loading documents, meter tickets, weighbridge records, sealed samples, photographs and proof of delivery.

Create procedures for:

• short delivery;
• delayed delivery;
• off-specification product;
• contamination allegations;
• vehicle breakdown;
• rejected loads; and
• customer non-payment.

11. Build the Transaction Evidence Chain

The completed file should allow an independent reviewer to understand what happened without relying on memory.

Retain:

1. customer enquiry and approved quotation;
2. customer purchase order;
3. supplier quotation and purchase confirmation;
4. verification and approval records;
5. supplier invoice and payment evidence;
6. allocation, nomination or release;
7. vehicle and driver details;
8. loading evidence;
9. delivery evidence;
10. customer invoice;
11. customer payment; and
12. final quantity and financial reconciliation.

12. Test the Workflow Before the First Live Order

Run a tabletop simulation. Select a sample customer order and take it through every step. Ask each responsible person what they require, what they approve and what record they create.

The test should expose missing templates, unclear authority, inaccessible files and gaps between sales, finance and operations.

13. Set Approval Limits

Not every employee should be able to commit the company to a high-value transaction. Define approval limits for quotations, credit, supplier onboarding, contracts, payments and exceptions.

High-risk first transactions should receive senior-management review even if the value falls within a normal limit.

14. Prepare the Compliance Calendar

Add annual information submissions, fees, company changes, insurance renewals, agreement expiries and supplier-review dates to one calendar.

Assign a named owner and maintain proof of every submission or renewal.

First-Trade Readiness Checklist

• Issued licence and company records confirmed
• Supplier verified and approved
• Product source and specification confirmed
• Storage or depot process confirmed
• Transporter and delivery process approved
• Insurance reviewed
• Customer onboarded and credit approved
• Transaction economics and cash flow tested
• Bank details independently verified
• Contracts and documents approved
• Quality, quantity and dispute controls defined
• Evidence-file structure ready
• Workflow simulation completed
• Approval limits documented
• Compliance calendar active

Important: This checklist is general information and is not a complete legal, regulatory, financial, insurance, quality or safety assessment. Adapt it to the business and obtain qualified advice before the first transaction.