Use a transaction review before payment, then add factory, product, compliance or legal checks when the purchase risk requires them.
Layer 1 — company and transaction evidence
This remote layer checks the Chinese legal identity, current registry profile, business scope, transaction documents and proposed payment route. It is suited to the moment before a deposit or material supplier payment.
Its strength is consistency checking: do the company, PI or contract and beneficiary connect? Its limitation is physical reality—it cannot see production lines, inventory or finished goods.
Layer 2 — factory and operational evidence
A factory audit can examine location, facilities, workforce, quality systems and production capability. A video call or supplier-provided photo is not equivalent to independent on-site evidence.
Use this layer when capacity, subcontracting or facility claims matter to the buying decision. It can complement, but should not replace, entity and payment checks.
Layer 3 — product, compliance and shipment evidence
Samples, laboratory testing, certification checks and pre-shipment inspections address the product rather than the legal entity. The correct controls depend on the destination market, product category and contract.
Regulated, safety-critical or high-value goods may also require specialist legal, sanctions, customs, technical or tax advice. A general supplier report should not imply that these obligations were covered.
Match the depth to the exposure
Consider order value, deposit percentage, product risk, customization, payment route and the cost of failure. A small repeat order paid through a protected platform may need a different stack from a large custom order paid by bank transfer.
Document every control and its limitation. If the entity, documents or beneficiary change after review, reassess the affected layers before releasing funds.
- Registry and transaction review
- Factory audit where physical capability matters
- Product sample and testing
- Pre-shipment inspection
- Specialist advice for regulated or complex risks
Common questions
What buyers ask before payment
Is supplier due diligence the same as a factory audit?
No. A factory audit examines physical operations; company and transaction due diligence examines legal identity, documents and the payment chain.
Which check should happen before the deposit?
Confirm the legal entity, PI or contract and beneficiary before payment. Add factory or product controls when those risks are material.
Does due diligence eliminate risk?
No. It reduces uncertainty and creates decision controls, but it cannot guarantee future conduct, quality or delivery.