Paying a deposit to a supplier you have never met is one of the biggest risks in B2B importing. Fake trading companies, factories that subcontract without telling you, and suppliers that disappear after the first payment cost UAE and GCC importers money every year. The good news is that most of these problems can be spotted before you pay, if you follow a clear verification process.
This checklist walks through the checks we recommend before placing a first order.
1. Confirm the company legally exists
Start with the basics. Ask the supplier for a copy of their business licence and check it against the official register in their country.
- China: search the company name or Unified Social Credit Code on the National Enterprise Credit Information Publicity System. Check that the name, address, registered capital and business scope match what the supplier told you.
- UAE: check the trade licence with the issuing authority (the relevant emirate’s economic department or the free zone).
- Other countries: use the national company registry.
If the business scope does not include manufacturing, you are dealing with a trading company. That is not always a problem, but you should know who actually makes your goods.
2. Factory or trading company?
Manufacturers usually offer better prices and more control over production. Trading companies offer wider product ranges and smaller MOQs. Ask directly, then verify:
- Does the address on the licence match the factory address?
- Can they show the production line on a live video call, not just photos?
- Do they own the moulds or tooling for your product?
3. Check export history and references
A supplier that already exports to the Middle East understands GCC labelling, documentation and shipping. Ask for:
- Two or three references from buyers in the UAE, Saudi Arabia or Europe.
- Examples of commercial invoices or bills of lading (with prices hidden).
- Any marketplace or trade-fair history (for example, years exhibiting at the Canton Fair).
4. Review certifications
Ask for certificates that matter for your product and market: ISO 9001 for quality management, product test reports (CE, RoHS, FCC for electronics; FDA or GCC conformity for food-contact items), and any certificates your customers require. For Saudi Arabia, check whether the product needs SASO/SABER registration. Verify that certificates are issued to the same company name and have not expired.
5. Run a factory audit
For larger or ongoing orders, an on-site audit is the most reliable check. A typical audit covers:
- Legal status and ownership
- Production capacity and machinery
- Quality control process and incoming material checks
- Workforce, working conditions and safety
- Social and environmental compliance
You receive a report with photos, a score and a list of risks, so you can decide before committing.
6. Start with a sample and a small order
Even after verification, order samples first, then a trial order. Use secure payment terms such as 30% deposit and 70% after inspection or against the bill of lading, never 100% upfront for a new supplier.
Red flags to watch for
- Prices far below every other quote
- Pressure to pay quickly or to a personal bank account
- Bank account name that does not match the company name
- Refusal to allow video calls, audits or third-party inspection
- Certificates that look edited or belong to another company
Worked example: checking a new cookware supplier
A Dubai retailer wants to order 3,000 non-stick frying pans from a supplier found online. Before paying the 30% deposit, they:
- Check the licence. The company exists, but its business scope says “trading”, not “manufacturing”. The supplier admits the pans are made by a partner factory.
- Ask for the factory’s details. The supplier shares the factory name; its licence covers cookware production and the address matches a live video tour.
- Request documents. The factory provides a food-contact test report issued to its own company name and dated within the last year.
- Order samples. Two samples arrive; one has a coating defect, which the factory fixes before mass production.
- Agree terms. 30% deposit, 70% after a passed pre-shipment inspection.
The result: the retailer pays a small trading margin but knows exactly who makes the goods, has test reports for its customers and is protected by the inspection clause.
Frequently asked questions
How long does supplier verification take? Document and online checks usually take a few working days. An on-site factory audit needs to be scheduled with the factory and typically adds one to two weeks, including the report.
Is buying from a trading company a bad idea? Not necessarily. Trading companies can offer lower MOQs and mixed-product orders. The key is to know which factory makes your goods and to inspect quality before shipment.
What payment terms are safest with a new supplier? Avoid paying 100% upfront. A deposit of around 30% with the balance after a passed inspection, or against a copy of the bill of lading, is common. For larger orders, a letter of credit gives extra protection.
Do I need to visit the factory myself? No. A third-party audit with photos, video and a scored report gives you an independent view without travel. Many UAE importers combine a remote audit for new suppliers with a visit for their most important partners.
How SourcingBytes helps
Our Supplier Verification & Factory Audit service checks licences, export history and production capacity on-site and gives you a clear audit report before you pay. Combined with Product Sourcing & QC, you get verified suppliers and inspected goods for your UAE or GCC business.
Ready to check a supplier? Submit a sourcing request and our team will get back to you.
