Sourcing from China offers significant cost advantages due to lower production and labor costs, along with access to a broad range of high-quality products and manufacturing expertise. Additionally, China’s extensive supply chain network ensures fast delivery and scalability for businesses worldwide. However, there are notable risks, including scams, quality control issues, and intellectual property theft.
Our China supplier verification service ensures that a business is legitimate, officially registered, and operates within the authorized scope of its license. We also assess the supplier’s credit history to verify their financial stability and operational reliability. This process not only protects your money but also builds trust for future sourcing, partnerships, and business ventures in China. Once the verification is complete, we provide a comprehensive China Company Credit Report. This report typically includes the company’s credit score (from A to F), financial stability, any outstanding liabilities, legal issues, transaction history, user’s reviews, and potential risks.
China Company Credit Report
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Our Credit Systems
TANG’s A-F credit system provides a structured way to evaluate the reliability and risk profile of companies based on their legal standing, financial stability, operational history, and customer feedback. This system helps businesses and investors assess potential partners by assigning a letter grade from A to F, with A representing the highest level of trustworthiness and F indicating a company that is either unregistered or highly risky.
Excellent Credit Rating
A company rated “A” is one that has a strong and stable legal and financial history. The company is legally registered, and neither the company nor its legal representative (or major shareholders) is involved in any court enforcement actions. The company has been registered for more than five years and maintains a solid presence across major platforms, with operational records on one or more platforms. Additionally, the company has a good reputation, evidenced by a low number of negative reviews, which do not exceed 10% of the positive reviews. A company with an “A” rating also has a strong track record in exports, indicating a history of conducting international trade successfully. This combination of factors reflects a well-established company with a positive reputation and a low risk for potential business partners or investors.
Recommended Actions
In most cases, funding is safe, and the product quality is reliable. However, caution should be exercised when dealing with large orders (over $500,000) or orders that require over 6 months to complete.
Good Credit Rating
A “B” rating represents a company with a generally positive track record but with some potential concerns. Like the “A” rated companies, those in category “B” are legally registered, and neither the company nor its legal representative has any involvement in enforcement actions. The company has been operating for more than five years and has a presence on major platforms, where it conducts business. However, the company may have some noticeable negative reviews, which could raise concerns for potential partners. The number of negative reviews in a “B” rated company may be significant but does not overwhelm the positive feedback. This means that while the company is generally reliable, it has some issues that need to be addressed to improve its overall reputation.
Recommended Actions
Generally, funds are safe, but caution should be taken when orders exceed $200,000. There might be minor issues with product quality or delivery time. It’s advisable to establish a formal purchase agreement. Include detailed terms about product specifications, such as material, dimensions, and color requirements.
Fair Credit Rating
Companies with a “C” rating are legally registered, and neither the company nor its legal representative is involved in enforcement actions. However, these companies have been in operation for a shorter period than those rated “A” or “B,” with a registration history between 12 months and 5 years. While the company is not considered a high risk, its shorter operating history makes it harder to fully assess its long-term stability and business practices. The “C” rating implies that the company has some operational track record but is still in its formative stages. It is generally viewed as a lower risk than companies rated “D” but not as stable or reliable as those rated “A” or “B.”
Recommended Actions
There are some concerns about the security of funds. For orders exceeding $10,000, consider splitting payments into smaller portions based on project milestones or after receiving initial goods. Use third-party inspection services to verify product quality before full payment.
Below Average Credit Rating
A “D” rating signals that while the company is legally registered and its legal representative is not involved in enforcement actions, it has only recently been established. The company has been operating for less than 12 months, meaning it has little to no history of business activity. This grade indicates that the company is still in its early stages of operation, and there is insufficient evidence to gauge its stability and reliability in the market. Given its limited operational history, potential partners or investors should approach with caution, as there are inherent risks involved in working with such a young company.
Recommended Actions
There is significant risk to the safety of funds. For initial orders, it is recommended not to exceed $5,000, and payments should be made in installments. If possible, choose other companies that have higher credit grade (A, B, or C).
Poor Credit Rating
A company rated “E” is legally registered, but there are significant red flags regarding its legal standing. While the company is officially recognized, either the company, its legal representative, or the major shareholders are involved in enforcement actions. This indicates that the company has been involved in legal disputes or financial difficulties that have led to court-enforced actions. As a result, companies rated “E” pose a much higher risk due to their legal entanglements, and potential partners or investors should proceed with extreme caution when considering doing business with them.
Recommended Actions
The risk is high, and it is strongly advised not to do business with such companies, but with companies that have higher credit grade (A, B, or C). If no alternative suppliers are available, consider making payments in person or using a third party for direct transactions.
Unregistered or Nonexistent Company
A company rated “F” is the lowest level on the credit rating scale, indicating that the company is not legally registered or does not exist at all. This means that the business does not have official recognition, and there are no legal guarantees or protections for partners or investors. Companies with an “F” rating are considered extremely high risk and should be avoided entirely. Any business dealing with a company rated “F” is exposed to significant legal and financial risks, as the company may not operate within the boundaries of the law or have any legitimate operations.
Recommended Actions
Do not do business with companies rated “F” under any circumstances. Companies in this category are nearly always fraudulent, and engaging with them could lead to financial loss or legal issues.
How Credit Report is Generate
A China company credit report is an essential tool for avoiding scams, product quality issues, and intellectual property concerns. Here are the four key steps we follow to generate a comprehensive China company credit report.
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Data Collection |
The first step involves gathering data from multiple sources such as public records, government databases, business registration authorities, and financial institutions. This data includes company registration information, ownership, tax filings, legal disputes, and other publicly available financial details.
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Data Verification |
The collected data is then verified by our team for accuracy. This verification involves checking the legitimacy of the company’s financials, confirming that the company is operating within the law, and ensuring that all records are up to date. Companies in China are often required to file specific documents annually, so their compliance status is also checked.
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Credit Scoring and Risk Assessment |
Using the verified data, a credit scoring model is applied to assess the company’s financial health and its ability to fulfill orders. The model evaluates key indicators such as payment history, debt load, financial performance, and legal or regulatory issues. Risk assessments are done to determine the likelihood of default or other financial problems.
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Report Generation and Delivery |
Based on the findings from the previous steps, a comprehensive credit report is generated and then delivered to the requesting party, such as a buyer, importer, or business partner.
Success Stories
1. Ensuring Supplier Integrity
A European manufacturing firm sought TangVerify.com’s assistance in verifying a Chinese supplier. The report revealed discrepancies in the supplier’s claimed production capacity, enabling the client to renegotiate terms and avoid potential losses.
2. Supporting Investment Decisions
An international investor used TangVerify.com’s services to evaluate a Chinese tech startup. The comprehensive analysis provided by TangVerify.com highlighted the startup’s strong financials and compliance record, leading to a successful investment.
3. Mitigating Legal Risks
A U.S. company planning to collaborate with a Chinese partner benefited from TangVerify.com’s litigation history report, which uncovered ongoing lawsuits against the partner. This allowed the client to reconsider the partnership and safeguard their interests.
Client Testimonials
1. Global Enterprises
“TangVerify.com has been an indispensable partner in our expansion into China. Their detailed reports gave us the confidence to proceed with our ventures.”
– CEO, International Retail Chain
2. Small Businesses
“As a small business owner, I rely on TangVerify.com to ensure that my Chinese suppliers are trustworthy. Their thorough analysis has saved me from costly mistakes.”
– Owner, E-Commerce Store
3. Investors
“The insights provided by TangVerify.com were instrumental in evaluating my investment in a Chinese company. Their professionalism and accuracy are unmatched.”
– Private Equity Investor
Frequently Asked Questions
If you have further questions or need additional assistance, please don’t hesitate to email us at contact@tangverify.com.
General Questions
- How accurate is the information provided?
The data is sourced from official records and verified through multiple reliable channels for accuracy. - Do you guarantee 100% reliability of the supplier?
If a supplier fails the verification, you will receive a detailed explanation of the issues, along with recommended next steps. - Do you provide follow-up support after verification?
Yes, we offer clarifications and recommendations based on the report findings. - Can I receive a printed copy of the report?
No, we only deliver the report in electronic PDF format, compatible with all major browsers. You can print the report yourself. - Will I understand the report easily?
Yes, the report is detailed yet straightforward, with all technical terms clearly explained. - Does the service confirm if the business is a factory, wholesaler, or agent?
Yes, we determine the business type based on registration and operational data. - Can you verify multiple suppliers?
Yes, we handle multiple verification requests, with discounts available for bulk orders. - Can you check if the company is blacklisted?
Yes, we cross-check with official databases for blacklisting or red flags. - Do you verify the company’s physical address?
Yes, we confirm the supplier’s location as part of the verification.
Process and Confidentiality
- What information do I need to provide?
The company’s name, address, and any additional documents (e.g., contracts or invoices, if available). - Is the verification process confidential?
Yes, all information is handled with strict confidentiality. - Will the supplier be informed about the verification?
Only if necessary, such as for clarifications or document requests. - Do you offer an express verification service?
Yes, expedited services are available for urgent requests. Please contact us immediately after payment to arrange this.
On-Site Inspections
- Can you perform on-site inspections as part of the verification?
Yes, on-site inspections can be arranged for an additional fee. - What do you check during an on-site inspection?
We assess factory equipment, production capacity, workforce, and operational processes. - Can I receive photos or videos of the facilities?
Yes, visual evidence can be included in the report for an additional cost. - Do you perform surprise visits?
Yes, unannounced visits are possible, subject to client requirements and additional fees.