“Evaluate your new supplier and its financial health before placing order and involving a deposit”
What is the Credit Check in Asia
The Credit Check also called Extended Factory Audit is a supplier qualification operation which is performed during the sourcing phase.
It aims to qualify the capability and verify the genuineness of your potential new supplier and give a quick view of its financial health in Asia.
Extended Factory Audit also allows to verify supplier certification and production processes.
See our Supplier Audit Solutions in Asia
Why use the Credit Check in Asia
When you perform your sourcing trough B2B platform you may find an important number of potential supplier with different profile. Yet, you are going to appoint probably only one for manufacturing your product, hence you need to sort them out and choose the best one.
Payment terms and conditions are mostly involving that you will have to send a deposit of 30-50% of the total value of your order to start the mass production. Those amount are usually not small, hard to get back once sent, and for this reason you may want to secure them by decreasing the risk to get scammed or to appoint supplier uncapable to handle properly your order.
The Extended Factory Audit, based on ISO 9001 standard, allows you to have a quick review of your supplier qualification and financial health before placing order. It is also a good checking tool to verify the nature of its business: trading, manufacturing, agent etc…
See our Supplier Evaluation in Asia Tips
When the Credit Check in Asia is occurring
This Supplier Evaluation usully takes place during the sourcing phase, after you have spoted a potential supplier to manufacture your goods and before you send money to them as deposit. It is normally performed during the sorting phase (qualification phase) of suppliers during the sourcing.
See our Supplier Evaluation Tips
Where the Credit Check in Asia is taking place
The Extended Factory Audit will takes place at the vendor premises. If your source is a manufacturer it will be made at the factory premise. If your supplier is a trading company there are chances that the auditor get invited to perform its audit at the manufacturing area which they cooperate with for production.
See our Quality Assurance in Asia
Who conduct the Extended Factory Audit in Asia
The Extended Factory Audit will be performed by a ISO 9001 qualified auditor having a significative experience in the field of your product.
See our Supplier Audit Solutions in Asia
How does the Extended Supplier Audit in Asia is performed
During a Credit Check the auditor will visit the premises of your supplier and will assess its capability to manufacture the required goods with the quality standard you are willing to reach. He will also check the 3 past years Financial Report to verify the supplier Financial Health
See our Supplier Audit Methodology
What the Credit Check in Asia is checking
The auditor will especially focus his time on checking the following:
– Presence of a real factory and its real name and owner
– Business licence and other certificate
– Which products are manufactured and in which proportion
– Profile of the vendor: manufacturer, trading, agent
– Workforce : employees and equipment
– Other customers served and samples present on site
– Overview of HR policies
– 3 Past Years Financial Report
– Social Regulation
– ISO Standards
See our Factory Audit Standard
What is the process for the Credit Check in Asia
The Extended Supplier Audit involves the auditor to get appointment with your supplier. Once arrived on site, a quick briefing will explain to the supplier what is the goal of the audit and how it will be conducted.
The auditor will then start auditing into the factory by following the production flow to understand the way the product is manufactured. At the end of the day, a debriefing will be done with the supplier to explain him his strong and weak point.
See our Supplier Audit Process
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What customers say
Toma G, Electronics Trader, Belgium
“Using the Supplier Credit Check allow us to verify our potential partner reliability and sustainability ”
Sara R, Hardware importer, England
“In our Business, evaluate our manufacturer financial health and trustworthiness after our sourcing phase is necessary”