1. Confirm the business is real
- India: verify the GSTIN on the GST portal and check that the legal name matches the invoice. Ask for the IEC if they export, and Udyam (MSME) registration if they mention it.
- China: ask for the business licence and check the Unified Social Credit Code on the national enterprise credit information system.
Check the registered business scope covers manufacturing your product, not only trading.
2. Factory or trading company?
Trading companies can be useful, but you should know which one you are dealing with. Ask for a live video walk through the production floor, machine lists, monthly capacity and staff numbers. Factories can usually answer technical questions about materials and processes straight away.
3. Samples and references
- Pay for samples from two or three shortlisted suppliers and compare them.
- Approve one golden sample and keep a sealed copy.
- Ask for references from buyers in your country, and call them.
4. Pay safely
- Pay only into a company bank account in the supplier’s registered name, never a personal account.
- Be very wary of last-minute changes to bank details. They are a classic email fraud.
- Link the balance payment to a passed inspection.
- Use a letter of credit for large first orders.
Red flags
- Prices far below everyone else
- No video call or factory visit allowed
- Pressure to pay quickly
- Different company names on the website, invoice and bank account
- Unwilling to accept a pre-shipment inspection
Every manufacturer Anthill Sourcing offers to a buyer has been checked first. See how we protect buyers.
Frequently asked questions
How can I check if an Indian supplier is genuine?
Verify their GSTIN on the GST portal, check that the legal name matches the invoice and bank account, ask for a video walkthrough of the factory, and order samples before a bulk order.
Is it safe to pay a supplier 100% in advance?
It is risky for a first order. A deposit with the balance after a passed inspection, or a letter of credit, gives you more protection.
