Trading company posing as a factory
Updated: 2026-08-31
Illustrative examples based on common buyer scenarios. These are anonymised method walk-throughs, not client testimonials.
A buyer was quoted factory-direct pricing from a company whose English site claimed manufacturing. Verification showed the registered entity was an import-export trader, not a licensed producer.
Scenario
The buyer found the supplier through a sourcing platform. The English website used the words factory and manufacturer, and the quoted price was below the market rate. The contract was drafted with the trading arm.
What we did
- 1. Matched the English company name to the Chinese registered name on the business licence.
- 2. Checked the business scope: the entity was registered for import and export, with no manufacturing licence.
- 3. Confirmed the registered address was an office building, not a production site.
- 4. Found a separate licensed manufacturer entity operating at another address, likely the actual production source.
Result
The buyer re-contracted with the licensed manufacturer entity, moved the deposit behind a document verification and a follow-up audit, and avoided paying a trading margin on top of factory-direct pricing.
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