How to Get Credit Payment Terms from Chinese Suppliers?

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.

Sinosure was set up in 2001 as a result of the Export Credit Insurance Department and the China Export and Import Bank merge. It is a Chinese credit insurance corporation that is state-owned and insures Chinese suppliers against credit risks.

With the support of Sinosure, suppliers can trade with 90, 120, and 160-day credit terms, and importers can benefit from deferrals that are granted due to the Sinosure guarantee. This strengthens international trade and increases the trading relationships between the 260,000 Chinese suppliers who are part of the Sinosure network and their international importer partners.

To gain a Chinese supplier's credit, a Sinosure credit limit is required. A Sinosure credit limit refers to the maximum number of loans granted to your company by Chinese suppliers. You can obtain a Sinosure credit limit by passing a credit investigation (typically lasting 21 days), after which Sinosure will put the credit limit in place for your business. The Chinese supplier's credit limit can be used to make purchases from Chinese suppliers using deferred payment.

To gain approval for Chinese supplier's credit, there are a few main factors that will be assessed. Some of these factors include:

• The turnover of your company
• Your company's credit history, and
• Whether you have made regular payments to suppliers in prior transactions

With our expert consulting services, obtaining a Sinosure credit limit is free of complications. We ensure your company gets approved for Chinese supplier's credit and help you navigate the steps involved with making an application. Explore Axton Global's provision of expertise and consulting services to obtain Chinese supplier's credit limits, smoothly and efficiently.

Does your company import products from China? Streamlining and enhancing trading terms with your supplier is more than possible with the Sinosure credit insurance tool. It will take your business to the next level and boost your trading terms, significantly. Explore your options with a consultation now.