A low price and a nice catalogue say nothing about whether a supplier will deliver. Before any payment, check five things.
1. The company is real and matches the contract
Ask for the business licence and compare the company name, registration number and address with the details on the invoice and the bank account. In China every company has an 18-digit Unified Social Credit Code that can be checked in the national enterprise credit register. If the bank account belongs to a different company or a private person, stop.
2. Factory or trading company
Both can be fine, but you should know which one you deal with. A factory shows its production lines, machines and staff on a video call and can explain how the product is made. A trading company usually shows an office and a showroom. Trading companies add a margin, but sometimes give better service and mixed orders.
3. Export experience
Ask which countries they ship to and for examples of export documents with buyer details hidden. A supplier that has never exported will struggle with invoices, packing lists and certificates.
4. Certificates and test reports
Ask for certificates that apply to your product and your market, and check that the product name and factory name on the certificate match. Certificates issued to another company are a common trick.
5. Samples and terms
Order samples before a big order and keep one approved sample as the reference for quality. Agree payment terms that protect you: a common split is a deposit before production and the balance after inspection. Avoid paying 100% upfront to a supplier you have not worked with.
What we do for you
Nectus runs these checks for every new supplier and adds a pre-shipment inspection on new orders. If you already have a supplier, we can check it for you before you pay.