Why verify before the deposit
The deposit is usually the first real money you send, often 30% of the order. Once it leaves your account, you have little leverage if the supplier turns out to be a trading company, can’t make the product, or isn’t the business you thought you were dealing with. Verification moves the checks to before that payment, when they cost least and protect most.
Two levels of check
Desktop check
We look the supplier up in China’s national business registry and compare what we find with what they have told you:
- registered company name, status and date of incorporation
- registered capital and legal representative
- business scope, and whether it covers manufacturing your product
- registered address against the factory address they gave you
- whether the bank account for payment is in the same company’s name
A desktop check confirms that the company exists and what it is licensed to do. It cannot show you a production line.
On-site factory audit
An auditor visits the factory and checks what is there:
- whether the production line exists and makes products like yours
- equipment, headcount and shift patterns, to judge real capacity
- incoming material checks and in-line quality control
- finished goods storage and packing area
- sub-contracting: whether parts or whole orders go to other factories
- any certificates they claim, checked against the issuing body
You get a written report with photos and a recommendation: proceed, proceed with conditions, or walk away.
Warning signs we look for
- The company on the invoice differs from the company you negotiated with.
- The bank account is personal or belongs to a different company.
- The business scope is “trading” or “technology” with no manufacturing.
- Certificates name a different company or have expired.
- The factory refuses a visit, or the address leads to an office building.
- Prices well below every other quote for the same specification.
None of these proves a supplier is dishonest. Each is a reason to ask more questions before paying.
Typical timeline
A desktop check usually takes a few working days. An on-site audit is normally scheduled within one to two weeks, depending on the factory’s location and how quickly they confirm access.
After the trade fair
Many buyers meet suppliers at the Canton Fair or on Alibaba and need to check them before ordering. Verification works for any supplier, wherever you found them, and suits buyers who want to keep managing the supplier themselves.
