Check a UK sourcing provider before paying a deposit
Match the contracting company to Companies House, read its accounts and filing history, then request current financial and credit evidence. Set payment stages around verified progress and the loss your business could absorb. Apply the same checks when buying through Cambridge China Bridge.
Identify the company that will receive your money
Ask for the legal company name and company number. Match these to the quote, contract and invoice, and confirm the bank beneficiary independently through a known contact. A trading name or a related company's accounts are not enough. Establish the provider's role using who you contract with.
Search Companies House and read the filing history and document images. Look for changes of name, directors or address, overdue filings, charges and insolvency entries. Ask for explanations of anything inconsistent with the sales proposal. Registration and an active status do not establish whether the provider can fund your order.
Read the accounts without filling in the gaps
Check the accounting period end as well as the filing date. Compare available accounts across periods: cash, amounts customers owe, stock, short-term liabilities and net assets. Ask an accountant to interpret unclear entries. Stock and unpaid customer invoices are not cash available to pay a factory, and positive net assets do not establish present liquidity.
Small companies and micro-entities can currently file accounts without a profit and loss account. Abridged accounts also disclose less information publicly. Missing turnover or profit figures therefore do not establish poor trading. Companies House warns that it does not check the accuracy of filed information. Treat the accounts as a starting point for questions, rather than deposit protection.
Ask for evidence of current funding
For an exposure that would materially hurt your business, request recent management accounts, a cash-flow forecast covering your order and an explanation of how factory payments will be funded. Ask about overdue supplier balances, borrowing and dependence on deposits from new customers. Any claimed funding facility should show available headroom, relevant conditions and its expiry.
Obtain a commercial credit report for the exact contracting company. Check its date, underlying accounts, payment evidence and any reported judgments or adverse events. Read the explanation behind the score and recommended credit limit: a trade-credit recommendation is not a guarantee of deposit recovery. With permission, contact recent trade references independently and ask about payment disputes and completion of comparable orders.
Limit the money exposed before delivery
List all money paid ahead of accepted delivery, including tooling and overlapping orders. Agree a maximum exposure your business can absorb, alongside the working capital needed for the order. Where evidence is thin, consider a smaller trial or staggered batches rather than increasing the advance payment.
Ask what each payment funds and tie releases to evidence such as an accepted sample, confirmed materials or an inspection report. Agree who checks each milestone and what happens if progress stops in the supply terms. Inspection evidence supports a quality decision; it does not show that the provider can refund you. Do not assume a separate bank account protects your deposit.
Record a decision and check again before payment
Keep a dated review with the company identity, documents examined, unanswered questions, agreed exposure and payment conditions. A small company or a short filing history calls for proportionate checks, not an automatic refusal. Pause payment if the beneficiary changes unexpectedly, funding explanations conflict or the provider pressures you to pay before resolving material gaps.
Recheck before increasing exposure or releasing another advance. Ask for updated evidence when the order grows or delivery slips. Our China-based staff can check factory progress, but that is a separate question from the UK provider's financial resilience. If financial distress emerges, use the unfinished-order insolvency guide before agreeing further payments.
Frequently asked questions
Does active status at Companies House mean a supplier is safe?
No. It does not establish current cash availability or the ability to complete your order. Read the filings, request current evidence and limit advance-payment exposure.
Why is turnover missing from a sourcing company's accounts?
Small companies and micro-entities can currently omit the profit and loss account from their filing. Ask for current financial evidence rather than guessing turnover from balance-sheet entries.
Is a good company credit score enough before paying a deposit?
No. Check the report's date and underlying evidence. A score or recommended credit limit does not guarantee that an advance payment can be recovered.
How much deposit should I pay a UK sourcing provider?
There is no universal safe deposit. Ask what it funds, link payments to verified progress and consider total exposure across unfinished orders. Reduce or pause the commitment if the evidence does not support it.