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 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.
Back to Sinosure Q&A →
• 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.
Back to Sinosure Q&A →
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
| Learn more |
Our Services
Obtain a new Sinosure credit limit for your company to negotiate deferred payments.
Expand your company's current Sinosure credit limit if you need to supply more goods.
Contact Us
Book a free online consultation with our specialist.
Axton Global is an international consulting company helping importers worldwide secure trade credit terms with Chinese suppliers.
We serve customers from 82 countries across 5 continents.
info@axtongl.com
We serve customers from 82 countries across 5 continents.
info@axtongl.com