Sinosure-Guaranteed Export Credits: How to Apply as an Australia-based Company

by Axton Global
Australia is a major trading partner with China. Their trading relationship with China has even grown as a result of the 2015 free trade agreement between the two countries, also referred to as (ChAFTA). During the year 2020, Australia imports from China equated to 61.05 USD, as described by the United Nations COMTRADE database. Although Australian importers may encounter difficulties during trade due to financing gaps, and therefore need trade credits, Sinosure makes this a possibility and assists Australian importers. Below, we have explained how Sinosure makes international trade simpler.
At Axton Global we endeavor to support companies based in Australia in arranging postponed payment conditions with suppliers in China. Our expert consultants use the Sinosure tool to help Australia-based companies to set up trade credits with their suppliers, who are backed by Sinosure indemnities. Take a look at our company's services page, and visit our homepage for more facts
How does Sinosure work?
Sinosure works in a few simple steps. Once your Australia-based company submits their financial documents to Sinosure, via Axton Global, they will launch a credit investigation that takes approximately 21 days. You then agree to the postponed payment terms with your supplier by signing a contract, and your supplier will then initiate the credit limit that is backed by a Sinosure guarantee. Once your goods have been shipped (for which you will have paid a deposit), you will then pay the outstanding value of the goods within your postponed payment agreement. Sinosure serves as a guarantee that your supplier will get paid. They insure your supplier.
What are the potential issues that can take place during a credit application?
Although one of our Canadian clients faced two main challenges when making an application for a credit limit, Axton Global was able to assist them. Here is how we solved the case.
Which difficulties can occur when setting up a credit limit?
There are a few difficulties that can occur when setting up a credit limit with a supplier, but each of these difficulties can be dealt with by Axton Global with ease.
Changing a company's legal address

One such example is our Australian client who altered their company address. As they had applied to Sinosure with company documents that featured different legal addresses, and Sinosure noted this difference and declined to offer a credit limit to the Australian company.

In cases like these, where Sinosure doesn't grant a credit limit in the first instance, it can be a challenge to apply once again and restart the process of being approved.

However, Axton Global made this possible by collating all the required documents that exemplified the company's new address. We then appealed to Sinosure to initiate the credit evaluation process a second time.
This allowed the credit limit to be successfully approved, and the Australian company was granted the credit limit in the end.

Increasing a credit limit value

Following their approval for a credit limit, the company subsequently needed to increase the limit and solicited our services to assist them.

Given that their financial history was not entirely favourable, we requested that they provide indemnification from their parent company. We then applied for an increase in the credit limit and were successful in acquiring $700,000 extra in terms of the Australian company's credit limit.
Australian companies looking to set up a credit limit with their suppliers need to look no further than Axton Global for crucial support and advice. We make sure your company receives top credit limit conditions, guaranteed by Sinosure, from China-based exporters. Book your free consultation to discover more.

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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