There are two significant reasons why you will require Chinese suppliers credit as an international importer. Not only might you face a lack of working capital, but you might also encounter a problem with the shipping period – namely, that it can potentially last up to two months. The typical payment terms for imports tend to include a 30% deposit, which is required before initiating production, and then the remaining 70% before shipping – (once the goods have been manufactured but are awaiting shipment).
Because your supplier will want to avoid taking credit risks, they will require payment before shipping. Credit risks are the possibility of losses from the perspective of Chinese suppliers, who, in some cases, don't have the expertise and tools to evaluate the importer's financial good standing. Therefore, they look to Sinosure to tackle this issue.