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Factory or trading company: signs and checks

A trading company is not always bad, but you should know who controls production before you pay.

Updated: June 20267 min

Signs of a real factory

Consistent registered scope, industrial address, production photos that match the product, equipment lists, staff on video and willingness to accept inspection are positive signals.

Signs of an intermediary

Too many unrelated product categories, office-only address, vague answers about production lines, no factory visit and changing company names are common warning signs.

How to verify

Cross-check registration data, ask for production evidence, request references for similar export orders and inspect the site when the order size justifies it.

When a trader can still work

A strong trading company may add value in consolidation, communication and export handling. The risk is not the label; the risk is not knowing the role and margin.

Summary

Do not reject every trader automatically. Verify the role, production control and responsibility before deciding.

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