How to identify the strength and safety of Chinese suppliers?

In international transactions, payment security is the most important link. In many cases, the lack of judgment on suppliers will lead to the buyer being short of goods, or even being cheated for a large amount. Today, AYAAON would like to share with you how to identify the strength and credibility of a supplier through the information of the receiving bank provided by the supplier.

In China, private enterprises are divided into two categories: general taxpayers and small-scale taxpayers. The former is a powerful supplier with the ability to declare exports in the name of company, while the latter is a small-scale enterprise that cannot declare exports in the name of company. Therefore, the former is certainly stronger, and AYAAO TECHNOLOGY belongs to general taxpayers.

The forms of bank information of these two types of companies are different. Ayaaon would like to introduce to you:

The beneficiary of the general taxpayer's receiving bank information is not only exactly same as the name of the enterprise, but also the bank address and the business address of the enterprise are in the same city, belonging to Chinese Mainland (excluding Hong Kong and Taiwan).

The beneficiary of small-scale taxpayers' bank information are often different from the names of enterprises. For example, the names of enterprises contain the  city name of Chinese Mainland, but the beneficiary of bank information contain the addresses of Hong Kong and Taiwan. Although the owners are the same person, they are two independent companies in Chinese law. Then there is a huge capital risk for the buyer. Since these are two independent companies in law, if the Chinese Mainland enterprise not to deliver goods after the overseas bank receives the payment, buyers are difficult to win the lawsuit. Or when the buyer wants to exchange the goods if there is something wrong with the goods' quality he has received, the seller disagrees, and the buyer is often unable to effectively safeguard his rights.

In addition, there is a more common difference: some companies do have the same bank beneficiary as the company name, but the address of the receiving bank is not in the same city as the business address of the enterprise. This is because small-scale taxpayers cannot obtain formal bank accounts in Chinese Mainland, so they go abroad to open bank accounts to collect money.

Of course, if the seller does not provide a bank account in the name of the company as the beneficiary, but a bank account in the name of an individual as the payee, the risk is even greater. It is purely an individual transaction that is not an enterprise transaction, and it is the most risky transaction for the buyer.

Therefore, when doing international business, buyers can also identify the strength of enterprises through banks to avoid being cheated. The legal person of AYAAON has been engaged in international business for decades. We hope this sharing can help buyers of international transactions.