Newsletter, issue 1
Five questions to ask a factory before paying a deposit
A deposit sent to China is rarely recovered. These five questions take ten minutes and avoid most bad surprises.
1Are you the manufacturer, or a trading company?
Both can be fine, but price and lead times are not negotiated the same way. Ask for the business licence: the scope of activity is written on it.
2Can I see the factory, in person or by video?
A serious manufacturer accepts a visit or a video call from the workshop. Repeated refusal is a warning sign.
3What is your minimum order, and for a first trial?
Many factories accept a small batch at a higher price. Better to know before comparing offers.
4Who inspects the goods before shipment?
Plan a third-party inspection before paying the balance. Write it into the purchase order, with the acceptance criteria.
5Which account should I pay into?
The account must be in the company's name, at a bank in its country. A personal account or a last-minute change of bank should stop you.