How to spot a trading company posing as a factory

Trading companies are not always malicious— but when they pose as manufacturers, you pay middleman margins and lose control of production timing, QC, and export documentation.

Five red flags before you wire a deposit

1. No production floor in video calls — only showrooms or sample rooms.
2. Business license category does not include manufacturing scope.
3. MOQ flexibility that is too good — real factories have line minimums.
4. Refusal of third-party audit or “audit not allowed during peak season.”
5. Export history that cannot be verified with reference buyers.

What a real audit reveals

Tendlyn auditors photograph production lines, QC stations, raw material storage, and export packing areas—not staged sample rooms. We cross-check license data against the entity on the contract and the bank account receiving your deposit.

The cost of skipping verification

One client avoided a $180K PO to a trading desk that subcontracted to an unqualified facility. The audit fee was less than 0.5% of the avoided loss.

Request a factory audit →