Why one check is not enough
You found a supplier on Alibaba, they sent a catalog, and now they want a 30% deposit. Before you send money, slow down. The best way to verify a Chinese supplier before payment is not one clever trick. It is a stack of checks that cross-reference each other: legal registration, bank account, factory evidence, samples, and payment terms. A marketplace badge or a polished website helps, but it does not prove that the company owns a factory or will ship what you ordered.
Check the business license against the company name
Ask for the business license (营业执照) as a clear scan. It shows the company's full legal name, unified social credit code, registered address, legal representative, business scope, and date of establishment. The name on the license must match the proforma invoice, contract, and bank account.
Search the company on the National Enterprise Credit Information Publicity System (gsxt.gov.cn). Commercial databases such as Qichacha or Tianyancha can show shareholders, legal disputes, and abnormal operations. If the supplier says it is a factory, its business scope should include manufacturing for your product. Many trading companies call themselves factories. That is not automatically a problem, but you need to know who actually makes the goods. Ask for the factory's business license and the relationship between the two companies.
| Item to compare | Where to look | Why it matters |
|---|---|---|
| Company name | License, contract, invoice, bank account | A mismatch is a common fraud sign |
| Registered address | License, video audit, shipping documents | A fake address breaks recourse |
| Business scope | License | Shows if manufacturing is allowed |
| Legal representative | License, contract signer | Confirms who can bind the company |
| Bank account name | Bank details, contract | Payment should go to the legal entity |
Match the payment account to the legal entity
The bank account name should be the same as the company on the business license and contract. If the supplier asks you to pay a personal account, a third-party account, or an unrelated Hong Kong company, ask for a written explanation and documents. Sometimes there is a real reason, such as an export agent. But understand it before you pay.
Do not send money by Western Union, cryptocurrency, or a friend's personal account for a business order. Use a bank transfer to a company account, or a payment method with a dispute process. If bank details change by email, call the supplier on a known number to confirm. Email accounts get hacked, and fake bank detail emails are a known scam.
Ask for a live video audit, not a photo album
Photos and videos can be old, borrowed, or edited. Ask for a live video call with the factory. Make it specific. Ask the person to walk to the factory gate and show the company sign, then walk through the production line, warehouse, and quality control area. Ask them to show the business license on camera. Ask questions a real factory manager can answer: monthly capacity, machines, incoming material checks, usual lead time. Record the call with permission.
If the supplier refuses a live video or only sends a polished highlight video, treat that as a warning. For larger orders, a third-party factory audit is better. An auditor can visit the site, check the legal entity, take photos, and report on equipment, workers, and capacity.
Test with a sample and a small trial order
A sample tells you about product quality, packaging, and communication. Pay for the sample and shipping so the supplier takes you seriously. Check the sample against your specification, not just the supplier's photos. Look at labels, manuals, materials, finishing, and packaging. Ask whether mass production will use the same materials and components.
Then place a small trial order before a large one. A trial order tests lead time, packing, documents, and how the supplier handles problems. You will learn more from one small order than from ten friendly emails.
Verify certificates at the source
Certificates for CE, FDA, RoHS, ISO, and other standards are easy to copy. Do not accept a certificate image as proof. Ask for the certificate number and the issuing body. Check the number on the issuing body's website. Confirm that the certificate covers the exact product model and standard you need.
For regulated products, plan product testing with an independent lab. A supplier's internal test report is useful, but it is not the same as an independent test. Put the required standard in the contract and on the purchase order.
Choose payment terms that give you recourse
Avoid paying 100% upfront to a new supplier. Common terms include 30% deposit and 70% before shipment after inspection, a letter of credit for larger orders, or an escrow service. Marketplace trade assurance can help, but read the rules: what is covered, what evidence is needed, and how long a claim takes.
| Payment method | Protection level | Best for | Watch out for |
|---|---|---|---|
| 100% T/T before production | Very low | Almost never for a new supplier | No leverage if things go wrong |
| 30% deposit / 70% before shipment | Medium | First orders with inspection | Need a clear inspection clause |
| Letter of credit | Medium to high | Larger orders | Bank fees and strict document rules |
| Escrow or trade assurance | Medium | Smaller orders on platforms | Claim limits and evidence rules |
Put the inspection standard, delivery date, packaging requirements, and defect handling in the contract. If the order value is significant, have a Chinese-speaking person review the contract before you sign.
Run a consistency check on every detail
Fraud often shows up as small inconsistencies. The company name on the website does not match the business license. The email uses a free domain. The bank account belongs to a different province. The salesperson cannot explain who the legal representative is. The factory address on the license is an office building, not a plant.
Check the website domain age with a WHOIS lookup. A domain registered two months ago for a company that claims ten years of experience is a warning. Use a company email domain rather than a personal email. Ask the same question in different ways: who owns the factory, how long have you worked there, what is the nearest port? Real suppliers give consistent answers.
Red flags that should stop you from paying
- The bank account name does not match the business license or contract.
- The supplier asks for payment to a personal account or cryptocurrency.
- The supplier refuses a live video call or an on-site audit.
- The business license is blurry, expired, or for a different company.
- The company claims to be a factory but the business scope is only trading.
- The certificate does not list your product model.
- The price is far below the market and the supplier rushes you to pay.
- The supplier will not provide a sample or a trial order.
A simple pre-payment checklist
- Business license received and checked on gsxt.gov.cn.
- Company name matches the contract, invoice, and bank account.
- Bank account is a company account, not a personal one.
- Live video audit completed or third-party factory audit booked.
- Sample checked against your specification.
- Certificates verified with the issuing body.
- Payment terms written into the contract with an inspection clause.
- A local person or inspection company booked for pre-shipment inspection.
The best way to verify a Chinese supplier before payment is to combine these checks. No single document proves a supplier is safe. But when the license, bank account, factory video, sample, certificates, and payment terms all point to the same company, your risk drops a lot.
If you need a local team to check a supplier, audit a factory, or inspect goods before you pay, Globesino can handle that on the ground in China.