How To Know The Reliability Of Suppliers From Bank Account

bank account of suppliers

How To Know The Reliability Of Suppliers From Bank Account

“How to know the reliability of suppliers from” is a topic,You can also learn How to know the reliability of suppliers from website or  How to know the reliability of suppliers from company registration documents, Now I will share with you how to know the reliability of the supplier from the bank account.

If you are making business with a Chinese supplier, whether it is a sample or a batch product, you will get the bank account information for that supplier, which may be on PI or Sales Contract.

Usually Chinese suppliers’ bank accounts are divided into the following five categories:
1. Mainland China company bank account
2. Mainland China personal bank account
3. Overseas Company bank account (Registered  in Hong Kong, Virgin, Cayman)
4. Company’s Paypal account
5. Personal Paypal or West Union

We are not talking about the convenience and handling of these payment methods. Just know the reliability of the supplier from account information , the reliability will be scored and displayed with a score of 10 stars.

1. Mainland China company bank account

Recommended 10 Stars

Only companies that are legally registered in mainland China and have been registered for foreign trade can open this account with mainland China banks. Both the beneficiary address and the bank address are terminated by China or CN/CHN. It proves that the supplier is a legally operating company with a relatively large accounting system and a relatively large scale.

2. Mainland China personal bank account

Recommended 2 Stars

Any Chinese can open a US dollar account with a mainland Chinese bank. The beneficiary is a personal name, which is relatively short, and the beneficiary address and bank address are all terminated by China or CN/CHN. However, the government prohibits companies from using such accounts only for individuals, and the maximum amount is 50,000 US dollars / year. If the supplier uses such an account, please note that the supplier is probably not a legitimate company, just a personal business. This is not protected by law.

3. Overseas Company bank account (Registered  in Hong Kong, Virgin, Cayman)

Recommended 6 Stars

In order to evade the Chinese government’s tax supervision, some suppliers will register companies overseas and open bank accounts, such as Hong Kong, Virgin, and Cayman, because these island areas are tax-free. Finally, the money in these overseas accounts entered China illegally.

Uncertainly, these suppliers do not necessarily have a company in mainland China, and some are just individuals who are registered overseas to do foreign trade business. Please check  How to know the reliability of suppliers from registration documents.

4. Company’s Paypal account

Recommended 9 Stars

The Paypal account includes a Email  and the beneficiary name. You will  konw whether the Paypal account is a company type or a personal type from the beneficiary name.
The beneficiary name of the company type Paypal account is relatively long, ending with Ltd or Limited. It has almost the same legal effect as the “China Mainland Company Bank Account” because the money for this Paypal account will be withdrawn to the company account.

5.Personal Paypal account or West Union

Recommended 1 Stars

West Union is a convenient international remittance method with only personal types.

If the beneficiary name of the Paypal account is a short name and there is no Ltd or Limited ending, it is obviously a personal Paypal account.

I don’t recommend that you pay for these two accounts, it’s very insecure. The product you import from China should of course be a deal with a company.

 

If a supplier can provide the above multiple account information, the one with the highest recommendation should be more realistic.

As we all know, Chinese suppliers are mixed, and they can quickly understand the reliability of suppliers through accounts, and the tips are of great use. Welcome to learn more about the topic “How to quickly understand the reliability of suppliers” feature article

 

Jijun Wong

Every man's work, whether it be literature of music of pictures or architecture of anything else, is always a portrait of himself.

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