How to Verify a Chinese Supplier Before You Pay a Deposit

Almost every importing loss we are asked to help recover starts the same way: a deposit was wired to a supplier who looked convincing online. The website was professional, the prices were good, the salesperson replied within minutes. None of those things tell you whether a factory exists, whether it can make what you ordered, or whether it will still answer the phone once your money has landed. Verification is not paranoia; it is the cheapest insurance available to an importer.

Start with the business licence. Every legitimate Chinese company has one, showing a registration number, the registered capital, the legal representative and, crucially, the approved business scope. If the scope says trading and the seller claims to be a manufacturer, that is not necessarily fraud, but you are talking to a middleman and should price accordingly. Ask for the licence in Chinese rather than a translated summary, and check that the company name on it matches the name on the bank account you are being asked to pay.

What a Proper Inspection Actually Covers

The bank account is where most trouble surfaces. Payment should go to a corporate account in the exact name on the business licence, held at a bank in the same city as the registered address. A request to pay a personal account, a Hong Kong account belonging to a differently named entity, or an account that changes at the last minute should stop the transaction until it is explained. Last-minute account changes arriving by email are one of the most common fraud patterns in international trade, and they are usually the result of a compromised mailbox rather than a dishonest supplier.