Import & Trade
How Trade Fair and Alaba Importers Should Check a Chinese Supplier Before Sending a Deposit
Raiz Editorial·Last updated ·8 min read
Most of your suppliers did not come from a website. A brother in Guangzhou introduced one. A trader at Trade Fair shared a WeChat contact. You met another at a market on your last trip. That is how real trade works, and it usually works well.
But there is a gap. A referral tells you a person is trustworthy. It does not tell you the company behind them is registered, allowed to export, or able to receive your money. On a container deposit, that gap is expensive. Here is how to close it in a day or two.
A referral vouches for a person, not a company
Before you question the supplier, question the person who introduced you:
- How many orders have they done with this supplier?
- Did the goods arrive as ordered and on time?
- Has the supplier ever changed factory, bank account or contact person?
- Was the balance handled cleanly after the deposit?
- Someone with two small orders knows less than someone who has shipped containers for three years. Size your deposit to match.
Why export authorization decides if your money clears
A business license only proves a company exists. To receive money from abroad, the supplier needs export authorization, tracked through China's foreign exchange regulator, SAFE. Without it, your CNY or CNH payment can be blocked, or your goods can be held at the port.
Some small factories get around this by using a licensed trading agent, usually for about 1% of the order value. That is not a scam, but you should be told. Otherwise you carry a risk you never agreed to.
Factory or trader? Three quick clues
Business scope. Words like manufacturing or production point to a factory. Wholesale, trading or import and export point to a trader.
Product range. A real factory specializes. A vendor selling lighting, furniture and gifts is buying from others.
Addresses. The registered address, the address your samples ship from and the name on your invoice should match.
Traders are fine. Paying factory prices to a trader is not.
The checks that matter
Run these checks before any deposit leaves your account:
- Get the full company name in Chinese and English, plus the 18 digit Unified Social Credit Code, in writing.
- Search it on China's National Enterprise Credit Information Publicity System, Qichacha or Tianyancha. It is free. The name and code must match, and the company must be active.
- Ask for the export license and have a translator read it. It should show a company name, expiry date and a QR code linking to the registry.
- Look up the address on Google Maps or Baidu Maps. Factories sit in industrial zones, not office towers or market stalls.
- Check ISO or CE certificates on the issuing body's own website.
- Ask for a live video walkthrough. Recorded tours prove very little.
- Make sure the account name receiving your money is the registered company, not a person.
- Split the payment. Deposit first, inspect, then pay the balance. A third party inspection costs about USD 200 to 350 per batch.
- And always start with a test order, even when the supplier comes highly recommended.
Red flags
Walk away, or at least slow down, when you see any of these:
- A quote 30 to 40 percent below market
- Reluctance to share the company name, registration code or export documents
- Requests to pay a personal account, use informal transfer or send crypto
- Registered address, sample origin and invoice name that do not match
- Changed bank details mid deal. Call a number you already trust before paying.
Verified is not the same as paid safely
A naira bank wire often goes through one or two conversions and several intermediary banks. On a few thousand dollars, that can quietly cost 3 to 5 percent, and your supplier may receive less than the invoice. Many suppliers, especially on 1688.com, also prefer Alipay or WeChat Pay, and informal middlemen for those charge unpredictable margins.
Raiz Finance lets you pay Alipay and WeChat Pay suppliers directly from naira, without a Chinese bank account. You see the exchange rate before you send, settlement is faster than a multi bank wire, and you keep a clean payment record that matches your verification file if a dispute ever comes up.
Quick answers
Is a recommendation from someone I trust enough? It is a strong start, but it covers the person, not the company. Check the registration, export documents and payee account too.
Can I verify a supplier without traveling to China? Yes. Registry checks, certificate checks and a live video walkthrough can be done remotely in one to two days.
What if my supplier has no valid export license? Your payment can be blocked and your goods held at customs. Confirm before you pay.
Ready to pay your verified Chinese supplier safely and directly?
Fund your Raiz Finance account with naira and pay Alipay or WeChat Pay directly from the platform.
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Raiz Editorial
The Raiz Finance editorial team provides insights on global payments, logistics, and compliance to help African businesses and importers move money faster.
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