Chinese Supplier Asking 100% Advance Payment? How to Verify Before You Pay

A Chinese supplier asking for a 100% advance payment is one of the most common warning signs in China-India trade. It does not always mean a scam, but it means you must verify the supplier before a single rupee moves. IFC – Imports From China (20+ Years Import Experts, trusted since 2004) helps Indian business importers verify suppliers and pay safely. This guide is for B2B importers only.

Why suppliers ask for full advance

Real factories often ask for 30% advance and 70% before dispatch. A demand for 100% upfront, especially from a supplier found on Instagram, Facebook or a chat app, deserves a pause. Fraudsters use full-advance requests because they disappear after the money arrives.

Five checks before you pay any advance

1. Business licence: ask for the licence and confirm the company name and address.
2. Bank account name: it must match the name on the business licence. A personal account or a different company is a red flag.
3. Live video: a live video call from the factory gate, showing the name and address, then production, QC, warehouse and office areas.
4. Contract: agree the product, quantity, price, payment terms and delivery in writing.
5. Sample: inspect a sample before placing the bulk order.

How IFC helps

IFC’s China office makes a contract with the Chinese supplier and verifies all the supplier’s details. A remote video audit costs about Rs 2,000. If a physical inspection is needed, IFC staff on the ground in China can do it for Rs 10,000 to Rs 25,000 depending on location. IFC has its own offices in Guangzhou and Yiwu with English-speaking staff and translators.

Frequently Asked Questions

Is a 100% advance request always a scam?

No, but it is a warning sign. Verify the supplier’s licence, bank account name and factory by live video before paying.

What payment terms are safer?

Verify the supplier first and agree terms in a written contract, for example an advance for production and the balance after inspection and before dispatch. IFC can help set up the contract and payment process.

What should the bank account name be?

It should match the name written on the supplier’s business licence. A personal account or a different company name is a red flag.

How much does supplier verification cost?

A remote video audit costs about Rs 2,000. A physical inspection by IFC staff in China costs Rs 10,000 to Rs 25,000 depending on location.

Who can use this service?

Indian business importers only. B2C and individual retail buyers are not served.