How does Sinosure credit insurance work?

by Axton Global
The purpose of this type of insurance is to guarantee Chinese factories receive timely payment from foreign buyers for products delivered with deferred payment terms. The objects of insurance are commercial loans provided by a Chinese exporter (policyholder) to foreign buyers.

The transaction involves three parties: the Seller (Exporter), the Buyer (Importer), and the insurance company (Sinosure).

Foreign trade transactions covered by Sinosure insurance comprise the following steps:
The importer passes through a credit investigation procedure
The insurance company assigns the importer a credit rating and credit limit
The supplier opens a Sinosure insurance policy (or has previously opened one)
The supplier registers the contract with the insurance company
The supplier gets insurance for the invoice
The importer pays a deposit (for the first part of the order, usually 10 to 30%) to the supplier
The supplier produces the goods and ships the goods without payment
The importer receives the goods with a deferred payment period of 90–180 days
After the deferral period expires, the importer pays off the debt owed to the supplier

The key point is that in order to work with suppliers under Sinosure insurance coverage, the importer must pass through the credit investigation procedure and obtain a Sinosure credit limit. And we'll tell you what that is in the next article.

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We help importers from all over the world to improve their trading terms with Chinese suppliers and extend payments to the supplier for 90 to 180 days using the Sinosure credit insurance tool

We help companies to obtain a new Sinosure credit limit, increase existing credit and provide comprehensive consulting services regarding Sinosure credit insurance
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