Business License Verification: What It Can and Cannot Tell You

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.

Third-party inspection companies like SGS, Bureau Veritas, and Intertek operate extensively in China. An inspector visits the factory unannounced, inspects goods using your quality checklist, and provides a report within 24-48 hours. Cost ranges from $300-800 per inspection depending on location and scope. For most orders, this cost is justified by the risk reduction. I've personally caught critical defects during PPI that would have cost 10x more if missed.

Video factory tours have become standard since 2020 but can be misleading. Ask the supplier to walk through specific areas: raw material storage, production lines, quality control stations, and finished goods warehouse. Request to see specific machines relevant to your product. Watch for inconsistencies — clean showroom but chaotic workshop, or different facilities than shown in previous videos. A live video call is harder to fake than a recorded tour.