How to Spot a Trading Company Pretending to Be a Factory

Google Maps Street View is a powerful but underused verification tool. Search the factory address and check: does the location match the description? Is the building size consistent with claimed production capacity? Does Street View show the factory sign in the photos? I've caught suppliers claiming factory status when Street View showed a residential apartment building. This one check takes 2 minutes and costs nothing.

Financial stability verification is overlooked by most buyers. Request a recent business license (shows registered capital and establishment date). For larger orders, ask for bank references or a credit report from a Chinese credit agency. A supplier on the verge of bankruptcy may take your deposit and use it to pay other debts. The warning signs are usually visible if you look: delayed responses, inventory sell-offs, and personnel turnover.

Customs data platforms reveal a supplier's real export history. You can see what products they've shipped, to which countries, at what volumes, and how frequently. A supplier claiming years of experience but showing only a few shipments is a red flag. Conversely, a supplier with consistent shipments to reputable buyers in your market is a strong positive signal. Use this data to prioritize which suppliers to visit.