Quality Products International

Credit Checks and Company Reports for factories across China

by on Nov.16, 2011, under China Manufacturing Blog

While China has faired better than most economies after the Global Financial Crisis, one would be naïve to think that companies here are not immune to financial problems.

In the manufacturing sector especially there has been a lot of pressure, with rising costs, both real costs of wages and improved worker benefits, the stronger Yuan and other factors are putting pressure on exports pricing.

The export market as a whole has shrunk and while the domestic economy is stronger than many around the world it is has not filled the void left by markets in Europe and USA, especially for many factories that western clients may be buying from.

The next result is that there is an increase of local and foreign owned companies in China failing or simply closing.

Doing direct searches and or credit checks on Chinese companies can be difficult and time consuming.

Language is of course an major barrier for most, and even then understanding the complexities of Chinas various provinces and districts is a complicated process.

Some companies will commission audits either on their own or at the behest of retail clients and it is fair to say that any factory that has a good result in a formal social or quality audit will probably be sound.

Where formal Audits are not required a combination of factory vetting and a credit check can be far more cost effective.

If there is doubt about a factory, particularly after an audit, a credit check /company report can be considered for further validation.

None the less QPI Ltd can arrange credit checks and company reports can be completed by local specialists in all provinces of China in some cases for less than US$100. That is small price to pay against deposits and full payments that will normally be many thousands of dollars.

Contact QPI Ltd for more details.

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