Sinosure Insurance for Buyers from Brazil. New opportunities for Brazil Importers.
by Axton Global
Because Brazil is one of the world's biggest importers of Chinese goods, many Chinese manufacturers utilize export credit insurance frameworks to manage cross-border risk when dealing with Brazilian buyers. Thanks to Sinosure (the state-owned export credit insurance provider), importers can order goods from China on deferred payment terms.
In this article, we describe the special case of one of our Brazilian customers who contacted us in early 2021 asking our consulting service about a Sinosure trade credit limit.
In this article, we describe the special case of one of our Brazilian customers who contacted us in early 2021 asking our consulting service about a Sinosure trade credit limit.
If your company imports goods from China, Axton Global provides comprehensive consulting services on how to obtain supplier trade credit. Find out more information at Axton Global and book a consultation to get started.
How Sinosure insurance works for Brazil importers
Solar Trade, one of Brazil's leading solar panel distributors, was about to start working with a new solar panel supplier in China. They had an order for solar panels worth one million US dollars and looked to secure a 90-day deferred payment on the order. This commercial arrangement was possible because Chinese manufacturers utilize export credit insurance tools, which require establishing an internal credit risk limit for the transaction.
As a specific importing subsidiary within a broader corporate group, the buyer's standalone financial profile needed additional structural support to enable the supplier to secure the full 1 million USD risk coverage baseline.
Initially, the new supplier secured an internal credit limit of $500,000 based on the subsidiary's public data. However, this was not enough to execute the full contract. To bridge the remaining $500,000 requirement, Solar Trade compiled a comprehensive financial package where the parent company demonstrated its full corporate backing. Thanks to this transparent data alignment, the supplier's credit insurance underwriters updated their risk evaluation, increasing the approved coverage limit to $1,000,000 and providing the green light to start the contract.
In addition, it was noted that Solar Trade possessed an excellent payment history under a previous $300,000 commercial credit arrangement with a former Chinese supplier. As a result of this precise record-keeping, the manufacturer safely extended a total commercial credit window of $1.3 million, empowering Solar Trade's import capacity and supporting its business growth.
As a specific importing subsidiary within a broader corporate group, the buyer's standalone financial profile needed additional structural support to enable the supplier to secure the full 1 million USD risk coverage baseline.
Initially, the new supplier secured an internal credit limit of $500,000 based on the subsidiary's public data. However, this was not enough to execute the full contract. To bridge the remaining $500,000 requirement, Solar Trade compiled a comprehensive financial package where the parent company demonstrated its full corporate backing. Thanks to this transparent data alignment, the supplier's credit insurance underwriters updated their risk evaluation, increasing the approved coverage limit to $1,000,000 and providing the green light to start the contract.
In addition, it was noted that Solar Trade possessed an excellent payment history under a previous $300,000 commercial credit arrangement with a former Chinese supplier. As a result of this precise record-keeping, the manufacturer safely extended a total commercial credit window of $1.3 million, empowering Solar Trade's import capacity and supporting its business growth.
Are you searching for a credit limit for your Brazil-based organization's trade and imports? Book your consultation for more information.
We help importers from all over the world to improve their trading terms with Chinese suppliers and extend payment terms to 90 or 120 days.
We provide comprehensive consulting services regarding trade credit insurance.
Our Services
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- Sinosure credit assessment and credit limit approval process to secure supplier trade credit.
- Advisory on Sinosure-related matters and structuring of complex supplier trade credit transactions.
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