5 Questions You Must Ask Before Paying Any Supplier in China
Key Insights for SCM Leaders
- 1Identity Check: Ask if they are a real manufacturer or trading company (check business license).
- 2Payment Terms: Standard is 30% deposit & 70% balance before shipping. Never pay 100% upfront.
- 3Quality & Compliance: Ask for past export history and their exact documented QC process.
- 4Safety Net: Lock in clear procedures for broken or defective items before sending money.
You're about to send thousands of dollars to a supplier in China. Stop. Before you hit send, there are five questions you absolutely must ask. Because once that money leaves your account, getting it back is nearly impossible.
Watch the short — 5 Essential Questions
I've seen too many buyers lose money simply because they trusted a supplier too quickly. A few simple questions could have saved them. Before you pay anyone, make sure you ask these five things.
1. Q1 & Q2 — The Basics: Identity & Payment Terms
First question: "Are you the actual manufacturer or a trading company?" You need to know who you're dealing with, so ask for their official Chinese business license.
Second question: "What are your payment terms?" If they demand 100% upfront before production begins, walk away. The standard industry benchmark is 30% deposit and 70% paid after inspection / before shipment.
Benchmark: 30/70 is standard. Paying 100% upfront strips away all your leverage if production is delayed or items are defective.
2. Q3 & Q4 — Experience & Quality Control
Third question: "Have you exported to my country before?" You want a partner who already understands your market's safety regulations, certificates (CE, FCC, RoHS), and shipping standards.
Fourth question: "What exactly is your quality control process?" If they don’t have a clear, documented system for catching defects, you are gambling with your cash.
3. Q5 — The Ultimate Safety Net
Fifth question: "What happens if there's a problem?" Whether it's late production, bad specifications, or broken items, you need to know how they handle claims before you pay them, not after. A reliable supplier will give you a clear, written agreement for replacements or credits.
| Question | Green Flag Answer | Red Flag Warning |
|---|---|---|
| Q1. Identity | Provides Business License showing 生产型企业 | Hesitates to share official license |
| Q2. Terms | 30% deposit / 70% balance before ship | Demands 100% upfront payment |
| Q3. Export History | Has past Bill of Ladings & certificates | No experience with your destination market |
| Q4. Quality Control | Documented IQC / IPQC / OQC process | "Trust us, we check everything by hand" |
| Q5. Claims Policy | Written replacement / refund clause | Refuses to commit to defect compensation |
What to Do Instead
Don't rush the process. Verify their status, lock in standard payment terms, check their export history, review their QC setup, and establish a clear backup plan. These five questions can save your entire business margin.
About to pay a new supplier and want an expert second opinion?
Send me a message. I’m Alex — your China sourcing agent. We audit suppliers and verify credentials before you wire funds.
Share this Article
Help your peers grow