In trade and receivables finance the ability of the client and its supply chain to perform is critically important. If goods supplied on open account do not meet the end-buyer’s requirements or are delivered late, the financier is exposed to the risk of non-payment or a shortfall in proceeds. The importance of goods inspection is discussed, and the criteria of inspection. The types of performance risk and methods of evaluation are described, including the failure to deliver acceptable goods on time, non-compliance with a credit insurer’s conditions of cover, and documentary risk which can result in confiscation of goods at the customs border or failure to receive payment under a letter of credit. The risks of contract and payment frustration are also highlighted.