In fact, most suppliers in China are trustworthy, but how can we avoid fraudulent enterprises?How to Determine if a Supplier is Untrustworthy?This article tells you the answer.
Utilizing search engines
1. You can search for “company name+scam” or “company name+scam”, which will display whether you have any complaints against the company.
2. Use the Internet to search for the company’s website Go to Google, type in the company’s name, and then click on “www.” This will take you directly to its official website. If there isn’t one, that might be a red flag.
Field inspection of the factory
The simplest way is to visit the factory, which can help you identify whether it is real or fake. You can talk to employees and see if their attitude towards work is good. If they seem dissatisfied with their work, it may be a problem.
You should also look at the factory’s facilities. If it is a real one, it will have all the equipment necessary for making clothes and accessories. If there are any machines missing, that might be an indication of a scam. Finally, you can also check if the company has any complaints or lawsuits against it.
China Business License
It is essential to understand the Chinese business license in order to verify whether a legitimate supplier is the best. To verify the registration number, please visit the local administrative government website or contact the local industry and commerce bureau.
What is the business license like?
A business license is a certificate issued by the administrative authority for industry and commerce to industrial and commercial enterprises and individual operators to engage in a certain production and business activity. The format shall be uniformly prescribed by the State Administration for Industry and Commerce.
The business license of a Chinese company provides basic information about the company, thus helping to determine its authenticity.
The following images include important information:
1. Company name
2. Type
3. Company address
4. Legal representative
5. Registered capital
6. Establishment date
7. Business Term
8. Business Scope
9. QR code
10. Official seal
Verify supplier information
The most secure way to verify supplier information is through the official website of China’s State Administration for Industry and Commerce (SAIC). There you can find a list of all companies registered in China, including their business license number.
You can check if the company has a filing record which shows that it has been active in business for a certain period. A filing record proves that the Chinese company is not fictitious.
Money transaction
Money trading is another way to verify the legitimacy of Chinese companies. You can tell the supplier that you want your product to be signed for by the local agent and paid in cash when signed for. If you don’t agree, then be careful!
You should also check the supplier’s payment history. You can go through their bank statements and see if they have been paid by other clients in the past. If they have, then that is a good sign that they are legitimate.
Maxtop Tech is a China sourcing company and supply chain assistance management company. Our service for buying office is help our customers to import goods from China more smoothly, more simple. more time-saving.
Takeaway:Finally, if there are good Chinese suppliers, they should also conduct regular quality inspections of their designated standards.