How to Verify an Overseas Supplier Before You Pay a Deposit

For importers, the danger comes before the goods: the deposit. Paying 30% — or 100% — in advance to a supplier you have never met is one of the most common ways businesses lose money in international trade. Sometimes the supplier is fake. More often it is real but small, overstretched or misrepresenting what it can produce. Here is how to verify an overseas supplier before any money leaves your account.

Manufacturer, trader or impostor?

Start by establishing what kind of company you are dealing with. A manufacturer owns production capacity. A trading company buys from factories and resells — perfectly legitimate, but you need to know, because quality control, lead times and pricing all depend on it. An impostor uses the name, licence or website of a real company to collect payments. Your verification should tell you which of the three you are dealing with.

Documents to request

• Business licence or certificate of incorporation, with the registration number.
• Tax registration and, where relevant, an export licence or customs registration.
• A bank account confirmation letter showing the account holder’s name.
• Product certifications relevant to your goods — then verify them with the issuing body.
• Recent photos or video of the factory and production line, ideally a live video call walking through the facility.
• Commercial references from other buyers.

Verify, don’t just collect

1. Check the registration number in the official registry of the supplier’s country — for China, the National Enterprise Credit Information Publicity System; for the UAE, the National Economic Register or the relevant free-zone register.
2. Make sure the legal name on the licence, contract, pro-forma invoice and bank account is identical.
3. Confirm that the registered business scope covers the products you are buying — and, for a manufacturer, production.
4. Compare the company’s age and registered capital with the size of your order.
5. Verify certificates directly with the certification body.
6. Confirm bank details by calling a number from the official website or registry — never rely on the email that sent them.
7. Order an independent credit report covering ownership, management, legal records, trade history and financial standing.

Questions to ask a new supplier

1. What is your exact legal name and registration number (for China, the 18-character Unified Social Credit Code)?
2. Are you the manufacturer, or do you source from a factory? If so, which one?
3. Where is the production facility, and can we do a live video walkthrough?
4. Which countries do you export to, and can you share two buyer references?
5. In whose name is the bank account that will receive payment?
6. Which certifications do you hold, and which bodies issued them?

Genuine suppliers answer these quickly and consistently. Vague, changing or delayed answers are a finding in themselves.

Supplier red flags

• The bank account belongs to an individual or a different company “for tax reasons”.
• The supplier changes bank details by email just before payment.
• Prices are well below what established suppliers quote.
• The company was registered a few months ago yet claims a long track record.
• Its business scope covers consulting or technology while it sells you heavy machinery.
• There is no export history for the products in question.
• It is reluctant to do a live video tour or to accept a third-party inspection.

See our full list of 15 red flags of fake companies.

Reduce your exposure even after verification

• Pay a smaller deposit, with the balance against a copy of the bill of lading — or use a letter of credit.
• Book a pre-shipment inspection with an independent inspection company.
• Use escrow or trade-assurance services for smaller orders.
• Start with a trial order before committing to large volumes.
• Keep contracts, specifications and inspection reports organised in case of a dispute.

Country-specific identifiers to check

• China — the 18-character Unified Social Credit Code, searchable on GSXT; the Chinese legal name must match the licence, chop and bank account.
• UAE — the trade licence number and issuing authority (emirate economic department or free zone), confirmed on the National Economic Register or the authority’s own portal.
• Turkey — the MERSİS number and trade registry record; company changes are published in the Turkish Trade Registry Gazette.
• India — the 21-character Corporate Identification Number (CIN) on the Ministry of Corporate Affairs portal, plus the 15-character GSTIN for tax registration.
• Pakistan — the SECP Company Universal Identification Number (CUIN) for companies, or the FBR National Tax Number for proprietors and partnerships.
• United Kingdom — the company number on Companies House, with its officers and persons with significant control.

What a supplier credit report adds

A professional supplier report ties all of these checks together: verified registration and licence details, ownership and UBOs (why ownership matters), legal representative and managers, registration changes, business scope, trade activity and export markets, legal and adverse data, financial analysis where available, and a credit rating with clear conclusions. Raaziq BCR provides these reports on suppliers in China, Turkey, India, the UAE, Europe and more than 200 countries in total, delivered in 1–48 hours. Country guides: China and UAE.

Frequently asked questions

How do I know if a supplier is a factory or a trading company?

Check whether the registered business scope includes production, look at registered capital and staff numbers, the factory address and ownership, and the company’s export history — a credit report sets these out together — and ask for a live video tour of the production line.

How much deposit is safe to pay a new supplier?

There is no universal figure, but limiting the first deposit, paying the balance against shipping documents and starting with a trial order all reduce the amount at risk. Base the decision on the supplier’s verified profile and rating.

Can I verify a Chinese supplier without speaking Chinese?

Yes. You can search the official registry with the 18-character Unified Social Credit Code, or order a report that includes the Chinese-language registry details, translated and analysed.

How fast can I get a supplier verification report?

Raaziq BCR delivers reports in 1–48 hours depending on the country, so you can verify a supplier before a payment deadline.

Paying a new supplier this week? Verify them first. Order a Raaziq BCR supplier report — info@raaziqbcr.com | WhatsApp +92-347-4597451.

Get a Credit Report →  |  WhatsApp +92-347-4597451  |  info@raaziqbcr.com