1: One of the suppliers has invited me to pay a visit to their factory to sign the contract. However, we haven’t even discussed the details of the transaction. Should I visit their company?
1, Paying a visit to potential business partners is a good way of being defrauded. However, if you don't make a background check against your business partner and visit them, you could potentially be in danger.
2, Know more about your business partner before you travel to their country and visit their factory. You can ask them to provide their company’s registration number so you can check them out.
3, Negotiate detailed information, such as price, payment terms and other related information with your supplier to check if they are really in this line of business.
2. I want to buy MP3 players but the supplier wants me to make an advanced payment. What should I do?
1, Do a background check against your business partner and don’t make a rush payment.
2, Consider signing a business contract to lower your trade risk.
3, If the supplier insists on receiving an advanced payment, make sure you are using a secure escrow payment system (e.g. PayPal) to protect yourself from fraud.
4, If you are transferring money, make sure your payment is only transferred into a company’s bank account. Avoid sending payments to a personal bank account.
3. I am dealing with a company, but the contact person gave me his private bank account instead of his company account. Is it dangerous?
1, It is quite risky to wire payment to a personal bank account. If any problems occur with this transaction, your payment cannot be used as evidence to prove you have dealt with this company. In short, your payment isn’t protected.
2, Ensure your payment is only transferred to a company’s bank account. Avoid sending payments to a personal bank account.
3, If the supplier insists payments must be paid into his private bank account, reject him and select a new supplier.
4. The company cannot be reached by the land number listed on your website, it said the number was invalid. I have been asked to contact him on his mobile phone. Is this supplier trustworthy?
1, Generally speaking, a legally registered company should have a land phone number for their business. If the phone number they provided is invalid, search their company name, or their other registered information using a search engine and compare the result to check their company’s legitimacy.
2, Check their mobile phone number using an online search engine. If you find this mobile phone number is listed under the name of a different company, it is most likely the company you have contacted is a fraudulent company.
5. The company I’m dealing with is located in UK, but they asked me to send payment to another country. Is this normal business practice?
1, Ask for the reason why the payment should be sent to a different country other than their registered country.
2, Search online and try to find out if this company has any offices/branches in other countries.
3, Check their registered information online to see whether this company is a legally registered company. Dial their UK telephone number directly to ensure it’s a valid number.