A China supplier verification checklist before you request a deposit

TL: Verify identity, confirm fábrica capability, test communication and project management, and confirm safe payment arrangements with a staged sample and pilot run before you send a deposit.

Verify legal identity and business scope first

Verify the supplier’s legal identity and business scope before you commit funds. Ask for the official business license and confirm the company name, registration number, and registered address match the invoice and bank account details. Practical checks:
– Request a clear copy of the business license and the legal representative name. Ask which entity will receive payment.
– Check the company type. Is it a factory, a trading company, or a trading company with an affiliated factory? This affects lead time and calidad control access.
– Compare the registered address to the production address the proveedor gives you. If addresses differ, ask for the relationship and proof such as a lease or WFOE documentation.
– Ask for recent export invoices or customs declarations that match the company name.

Red flags to watch for: inconsistent names across documents, reluctance to share basic registration information, or insistence on payment to a different beneficiary without explanation.

Confirm manufacturing capability and quality systems next

Confirm the factory can produce your product to the specifications, quantities, and timeline you need. Ask for concrete, verifiable details:
– Production capacity in units per day or month for the product line and typical lead times for tooling, samples, and mass production.
– Photos or videos of production lines, tooling, and warehouse areas. Request dated footage or live video walk-through.
– Samples and sample history. Ask for previous samples, test reports, or references from customers with similar products.
– Quality system basics. Ask how they manage incoming materials, in-process checks, and final inspections. Request a copy of a typical QC checklist.

If you plan a visit, bring a factory visit checklist and focus on machinery, staff skill levels, and material handling. See our factory visit checklist (/factory-visit-checklist) for what to verify in person and how to structure visits.

Assess communication and project management readiness

Assess whether the supplier communicates clearly, responds on schedule, and can manage product development milestones. Answer this before agreeing to deposits:
– Who is your day-to-day contacto and who signs comercial documents? Confirm names, roles, and escalation contacts.
– What are expected response times for emails, messages, and approvals? Run a short trial of sample development and observe turnaround.
– Do they provide written timelines for sample approval, tooling, pilot run, and mass production? Ask for milestones and deliverables with dates.
– How do they manage changes? Get a process for change requests, approvals, and cost impact documented.

If communication is poor in the negociación phase, it will likely be worse once production starts. Insist on a named project manager and clear status updates before you transfer a deposit.

Confirm payment, lead time, and contract terms before a deposit

Confirm payment arrangements and contractual terms that protect your interest before you send a deposit. Treat this as a checklist of verification steps:
– Request a proforma invoice with the exact bank details, beneficiary name, and company VAT or tax ID. Verify the bank account name matches the legal entity on the business license.
– Ask for the deposit percentage, the payment schedule, and acceptable payment methods. Consider staged payments tied to deliverables.
– Clarify lead times for tooling, samples, pilot run, and mass production. Put penalties or remedies for missed dates into the sales contract where appropriate.
– Confirm freight and delivery terms including INCOTERMS and who is responsible for export documentation.

Red flags for payments: pressure to pay via Western Union or to a personal account, inconsistent bank details, or refusal to sign simple contract terms. If you need more protection, consider third-party escrow options or a letter of credit. For guidance on precios negotiation and payment structure, review our pricing process overview (/pricing-process-overview).

Use a staged verification process: sample, small pilot, then full order

Use a staged approach to reduce risk and validate the supplier in real conditions before full payment. A typical staged path:
1. Sample order: pay for and approve a finished sample with packaging and labelling as required.
2. Small pilot PO: place a low-value production run to validate yield, lead times, and QC processes.
3. Pre-shipment inspection: arrange an inspection at pilot or pre-mass production to verify quantities and quality. Consider third-party inspection servicios.
4. Full production: after the pilot meets acceptance criteria, move to mass production with defined quality checkpoints.

Each stage should have acceptance criteria documented. Use third-party quality control services to check conformity and avoid last-minute disputes. If you cannot visit the factory, a professional visit or remote audit can verify on-site facts. See our quality control services (/quality-control-services) and the factory visit checklist (/factory-visit-checklist) for practical options.

Related Supplier Ally support

For project planning, see Supplier selection support, Supplier Ally sourcing services, y contact Supplier Ally when you need a second set of eyes on the supplier or production plan.

Next step

If you want a focused supplier verification before you send a deposit, contact Supplier Ally for a verification package that combines document checks, production capability review, and on-site or remote inspection planning. Reach out through our supplier verification services page (/supplier-verification-services) to discuss a tailored verification plan.