Red Flag Assessment for Transaction Risk, Scam & Fraud
Looking to source in Asia and need a Red Flag Assessment on the potential suppliers you're vetting? Let us help you with your assessment.
The experts at AsiaBridgeLaw.com have seen 1000’s of scams & fraud. Put us to work for you!
Typical customer?
The Red Flag Assessment is the ideal tool for clients who want source safe, avoid scams and confirm the legitimacy of their China suppliers.
This report is of particular value to clients who have one or more of the following concerns:
Is the supplier a real company?
If it’s a real company:
Are they fully-licensed for export in the desired product categories? Who really owns the operation? Are payments to this supplier safe? Are the documents and certificates provided authentic and valid?
How long does it take to complete the report?
The standard delivery time for the Red Flag Assessment is 5 business days in China. Expedite service is available for an extra fee.
If your potential service provider claims they can get the report to you in a matter of hours or even a few days…that is a red flag the report is not nearly as robust at the one offered by the team at AsiaBridgeLaw.com.
How much does it cost?
Much less than the cost of a trip to China! Visit our rate sheet for the latest pricing
How is the Red Flag Assessment made?
The subject company’s information is checked for authenticity and discrepancies using proprietary, yet fully legal, methods & technologies developed during the team’s 15 years doing business in China.
The subject company will not know the assessment is taking place.
AsiaBridgeLaw applies a four stage approach that is highly customized for their clients’ needs and far superior to other due diligence reports that may be available online.
First, their bilingual case managers work with the client to collect all relevant information about the subject company.
Second, their due diligence experts analyze the information and highlight the key findings relevant to our client’s situation. Chinese security experts reviewing Chinese records on your behalf!
Third, experienced sourcing professionals carefully review the findings in detail and offer their expert opinion on how the client should proceed. Professionals buyers reviewing the case on your behalf based, taking into account the realities of doing business in China.
Fourth, AsiaBridgeLaw leverages their bi-cultural and bilingual staff to translate the report and present it in an easy-to-understand format in the client’s language of choice (English, Chinese, Spanish, French, Portuguese & Russian are available at the time of writing).
Download a sample Red Flag Assessment: RFA Sample (PDF)
How to get started?
Check out the latest pricing on our rate sheet. Assuming you like what you see, simply reach out to use via the Contact Us page and let us know you would like a Red Flag Assessment.
Collecting the case file from client
The subject company will not know the assessment is taking place and AsiaBridgeLaw researchers will not contact the subject company, its staff or associated companies. The assessment is based on comprehensive study of information about the subject company as provided by the client. While every field below is important, the fields in bold are the most critical areas for the scam assessment. If the items in bold are provided, this is more than enough supporting documentation to allow us to conduct an accurate assessment in almost all cases.
Case File of the Red Flag Assessment
- Copy of key contracts/invoices/purchase orders
- Bank Account Details (Where do they want you to send money?)
- Copy of Business License as provided by the subject company
- English Name of Subject Company
- Chinese Name (in Chinese) Send scanned image if you don’t have Chinese language software to cut and paste.
- Address(es) of Subject Company in English
- Address(es) Chinese Send scanned image if you don’t have Chinese language software to cut and paste.
- Phone(s)/Fax(s)
- Social Media Profile(s)
- Email Address(es) of Subject Company
- Website(s) of Subject Company
- Skype/QQ/other contact details
- Scanned copy of brochures (Include Chinese version as well if available)
- Scanned copy business cards (Please scan both sides of cards and try to include Chinese business card information as well.)
- Have they exhibited at any trade shows? (If yes, please provide details.)
- How was initial contact made between you and this company?
- No need to send us all communications, but if there are key emails/faxes/phone calls, please provide a brief summary.
- Copies of passports/ identity cards
- Pictures of people and facility
- 3rd Party Inspection/Audit Reports conducted on-site in China
- Description of the product you wish to buy from this supplier (HS code if know/ Product image or description/ Estimated USD value)
- Any other information you feel is relevant for our research
DISCLAIMER: Reports are delivered to the subscriber in strict confidence for use by the subscriber as one factor in connection with other business decisions. The report contains information compiled from information and sources which the China Sourcing Service Center cannot fully control. While the information is believed accurate to our high internal standards, the China Sourcing Service Center does not take responsibility for the accuracy, completeness or timeliness of the contents of the report. The China Sourcing Service Center, its employees, owners and associated companies, disclaims all liability for any loss or damage arising out of or in any way related to the contents of this report.
FAQ: How does the Red Flag Assessment differ from the Corporate Assessment?
The Red Flag Assessment (RFA) for Transaction Risk, Scam & Fraud is useful when:
- you are doing business with a Chinese supplier of goods or services.
The Corporate Assessment (CA): Stability, Assets & Reputation is useful when:
- you are doing business with a Chinese supplier of goods or services,
- you are doing business with a Chinese customer,
- you are thinking about forming a partnership with a Chinese entity,
- you wish to take a Chinese company to court.
China Sourcing: Due Diligence
When you are buying from a Chinese entity, either report will help you avoid scams by confirming if the target entity is real or not. After verifying that the entity is real,
- The RFA looks at the risk associated with the deal offered by the target entity.
- The CA focuses on the financial stability of the target entity.
The two reports are designed to complement each other and it is recommended you conduct both forms of due diligence on suppliers.
Here is detailed look at where the two reports overlap and where they are specialized:
Covered in either report:
- Is it a real company (not a fake scam)?
- Who are the owners and legal representatives?
- What is the official address?
- Are they a manufacturer, distributor, trading company or other type of business?
- Are they licensed to export products out of China?
- Are the licensed to sell in the China domestic market?
- # and type of Employees on Record?
- When were they incorporated?
- Has their scope of business changed over time?
- In what type of building do they work? (office, warehouse, apartment, factory…)
The RFA offers the following additional items not found in the CA:
- How risky is the proposed payment method & terms of trade?
- Is the official signature being used?
- Are the documents and certificates provided authentic and valid?
- Are there red flags found on the company’s website and business listings?
- Are they well-represented at trade shows?
- Does their offering appear to be a good fit for your needs?
- Other red flags
The CA offers the following additional items not found in the RFA:
- Total Assets
- Total Liabilities
- Income
- Profit
- Taxes Paid
- Corporate Status
- Sales & Purchasing Data
- Litigation Records
- Media Coverage & Reputation
- Registered Trademarks & Patents
- Key Financial Ratios such as
- Return on net assets (%)
- Return on total assets (%)
- Net profit margin (%)
- Turnover of total assets Asset liability ratio (%).
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