SINOSURE.
Trade Credit for Importers
With Sinosure, you can access trade credits directly from your Chinese suppliers, allowing you to defer payment for goods up to 90 or even 120 days after shipment.
Onboard with Sinosure
Register your company with Sinosure to access trade credits from suppliers.
Get a Credit Limit Approval
Obtain a new Sinosure credit limit for your company to negotiate deferred payments.
Get a Credit Limit Increase
Expand your company’s current Sinosure credit limit if you need to supply more goods.
Sinosure is a Chinese state-owned corporation specializing in trade credit insurance. Sinosure insures the risk of non-payment by importers, providing a guarantee to Chinese suppliers. This allows importers and Chinese exporters to conduct trade transactions on trade credit terms.
If your company has a Sinosure credit limit, you can obtain a payment deferment of 90 or 120 days from your Chinese supplier.
More than 240,000 suppliers in China currently hold Sinosure insurance policies, indicating widespread use of this tool. This ensures you can easily find a supplier to work with on trade credit terms through Sinosure.
Choosing Sinosure is a gateway to growth for international importers, offering a way to expand through supplier trade credits. It’s all about unlocking financial flexibility, which enables you to increase inventory, promote trade development, and explore new markets without bearing immediate financial burdens.
The number of importers using trade credits backed by Sinosure ranges from 10,000 to 30,000, varying by country.
How SINOSURE Works
Sinosure mitigates the credit risks for Chinese suppliers in international trade, encouraging them to offer credit terms to buyers.
Start negotiations with your suppliers to switch your payment terms to an Open Account arrangement, using Sinosure’s services. Ensure your supplier either has a valid Sinosure policy or agrees to apply for one to facilitate this change.
Your company needs to be registered in the Sinosure Database (Sinorating) to receive a Sinosure ID. Sinorating will also provide a credit report on your company, which is necessary for the credit check process.
Once your suppliers have a valid Sinosure policy, they apply directly to the Sinosure insurance company by submitting an application form to secure a credit limit for your orders with deferred payment terms.
Sinosure’s Underwriting Department will review your company’s details and issue a credit limit. This limit allows your supplier to offer you trade credit terms securely.
Once everything is in place, your supplier will ship the goods to you without requiring upfront payment. The supplier uploads shipment data to Sinosure to insure the deferred payment.
Your company will then have 90-120 days post-shipment to settle the payment. The credit limit is revolving, meaning it becomes available again for use immediately after you’ve paid for the previous order.
Which Companies Qualify for a Credit Limit?
USD 1M - 10M
Minimum applicable credit limit in Sinosure.
2 Years
To qualify for a Sinosure credit limit, your company must have been in operation for at least two financial years.
Turnover
Your company must have achieved an annual turnover of more than USD 1 million in the last financial year.
Financial Health
Your company must be profitable and have no outstanding debts to suppliers.
Ready to begin? Schedule a free consultation with our specialist.
Does Sinosure Pay Money Directly to My Supplier?
No, Sinosure does not pay money directly to your supplier. Instead, the supplier extends trade credit to you on their own, meaning there are no additional financing costs for you. Sinosure provides protection to the supplier against risks associated with offering trade credit, encouraging them to broaden their business by providing flexible payment terms.
Why Should a Supplier Offer Me Trade Credit?
Suppliers are encouraged to offer trade credit as part of China’s strategy to gain a dominant position in international trade. The Chinese government supports this by providing insurance, subsidizing export credits, and creating incentives, including policies tailored for micro and small exporters. Additionally, suppliers face competition both within China and globally, using trade credit as a strategic tool to retain their clients. This competitive environment motivates suppliers to extend trade credits, helping them secure and maintain business relationships.
What if the Supplier Can't Give Me Trade Credit Due to Lack of Funds?
If a supplier is unable to extend trade credit because of financial constraints, Sinosure’s collaboration with major Chinese banks provides a solution. These banks offer export financing for suppliers, backed by a Sinosure guarantee. This means that every Chinese exporter has the opportunity to obtain export financing under Sinosure’s protection, ensuring they can offer trade credits to their clients despite their own financial limitations.