How to Check a China Supplier Before You Lose Your Deposit
Before you pay a China supplier, verify three things: the business license (does the scope say manufacturing, or just trading?), the factory photos (reverse-image-search them to catch stolen stock images), and the bank account (the name must match the license exactly). Never wire a deposit to a personal account, a different company, or a Hong Kong account when the factory is in mainland China — once the money lands there it is gone, and there is no company to chase.
A lot of China suppliers are traders, not factories
A trader buys from the real factory, adds a markup, and sells to you. You pay more, and you are one step further from the people actually making your product. And when something breaks, they cannot fix it, because they do not run the line. They just forward your message to a factory you were never allowed to see.
Here is the tell. Ask for their business license. Every real Chinese company has one. On it there is a line called the business scope. If it says manufacturing and your product, you are talking to a factory. If it says consulting, wholesale, or trading, you are talking to a middleman.
Check the factory photos in ten seconds
A trader will show you a beautiful factory. Clean floors, rows of machines. And it might not be theirs. Sometimes it is a partner factory. Sometimes it is a stock photo pulled off the internet.
Here is how you catch it. Take their best factory photo and drop it into a reverse image search. If that same photo shows up on five other supplier sites in three different provinces, you are looking at a stock image, and their proof belongs to someone else.
The bank account is the number one sign of a scam
When it is time to pay, a real factory gives you a company bank account, and the name on the account matches the name on the business license, word for word.
If they ask you to send the money to a personal account, or a different company, or an account in Hong Kong when the factory is in mainland China, stop. Once the money lands in a personal account, it is gone. There is no company to chase and no license behind it. Real factories use corporate accounts at the big Chinese banks.
The 7-Factor Supplier Checklist — the checks I run before a deposit moves.
Free. Plus the Monday briefing from Shanghai.
A real story: fifteen thousand dollars, gone
A buyer found a supplier online. Great website, a video call, a tour of the factory. He asked one technical question, and the answer was "let me check with the workshop." He should have stopped there. But the price was good, so he sent the deposit. Fifteen thousand dollars.
When the order was late, he flew to China to see the factory himself. There was no factory. The address was a small office in a business center. One desk, one laptop. The video call had been filmed somewhere else. He sent a message, then another, and the phone just went quiet. The deposit was gone, and there was nobody to chase.
Your supplier check before you pay
Checking a factory properly means knowing what to look for, in the right order: the license, the scope, the bank, the photos, and the floor. So I built the checklist I use myself. Seven factors, scored one by one. Above the line you go, below it you walk. It comes with the message you copy and paste to any new supplier, and most of the fakes show themselves in that one reply.
I made two versions. A free one for you, and the full premium one for seventeen dollars. Because seventeen dollars is nothing next to a fifteen thousand dollar deposit that disappears.
Get the Supplier Vetting Checklist →
Free version plus the full premium checklist for $17.
Frequently asked questions
How do I verify a China supplier is real?
Check three things before you pay: the business license, the factory photos, and the bank account. The license tells you if they manufacture or just trade, a reverse image search tells you if the photos are stolen, and the bank account name must match the license exactly.
How do I know if a China supplier is a factory or a trader?
Ask for the business license and read the line called business scope. If it says manufacturing and your product, they make it. If it says trading, wholesale, or consulting, they are a middleman adding a markup.
What is the number one sign of a China supplier scam?
The bank account. If they ask you to pay a personal account, a different company, or a Hong Kong account when the factory is in mainland China, stop. Once money hits a personal account, it is almost impossible to recover.
How do I check a supplier on Alibaba?
Do not rely on the badge alone. Ask for the business license, reverse image search their factory photos, and confirm the payment account matches the company name on the license before you send any deposit.
Should I pay a China supplier a deposit before I verify them?
No. Run the full check first. The moment your deposit lands in the wrong account, your leverage is gone and there is nobody to chase.
How do I check a Chinese business license?
Ask the supplier to send it directly, a real factory shares it with no problem. Read the business scope line, and confirm the company name matches the bank account you are asked to pay.
The 7-Factor Supplier Checklist — the checks I run before a deposit moves.
Free. Plus the Monday briefing from Shanghai.