Some online China suppliers are just unlicensed individuals operating from a home computer waiting to take your payment and run!
Every month importers around the globe who have send payment to suppliers they’ve met online, only later to learn they have been deceived and their payments have been lost. In most all such situations the so-called “supplier” is an unlicensed individual working from home who has placed “supplier” type websites online and is soliciting business or payments from unsuspecting overseas buyers.
Here’s a great, free way you can start to protect yourself. Tell the potential supplier that you have contracted with a third party inspection company to audit their company and/or factory and see the response you get from them. If they will not allow it, then in most cases you can be sure you are dealing with an unlicensed or shoddy entity. If they say that it is okay, then certainly have them checked out and see what you find.
Also, China business licenses are often “leased” out by the original business entity to unlicensed individuals. Its strange, but its true! And it has allowed many individuals to engage in export business without even having a business license! It’s called “Gua Kao” in Chinese and it means big RISK to you!
So when in doubt, have them checked out!
China Business Services offers a range of risk management, due diligence and inspection services in China. Please contact us to discuss your requirements, or visit the Our Services section of the website for more details.