How to Spot a Trading Company Pretending to Be a Factory

Phone calls reveal more than emails. A legitimate factory manager can answer technical questions about production processes without checking. A trading company representative will often need to 'confirm with the factory' for basic technical details. Schedule a voice or video call early in your evaluation. Listen to how questions are answered — hesitation, vagueness, and over-promising are all warning signs.

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.