Canadian Companies and Sinosure: How Businesses are Successfully Applying for Trade Credits

Canada is the 10th largest economy on the globe. The country's total imports from China are significant and in 2020 the total import value was 57.22 USD, as stated by the UN COMTRADE database. Specifically, Canada's imported goods from China include $13.62 billion in electronic equipment, $11.64 billion in machinery and tools, $3.41 billion in furniture and electronic signs, $2.61 billion in plastics and $3.8 billion in textiles and apparel.

Canadian importers, however, face challenges due to finance gaps. There is a growing requirement for trade credits for Canadian companies. But with Sinosure's short-term credit insurance, such companies are well-supported. Here we will explain how Sinosure helps.

If you are a Canadian-based company, making an application for a Sinosure-backed credit limit requires the following approaches.

• First, you provide Axton Global with your company's fiscal statements going back two complete years. We will make an estimation of the potential credit limit you might qualify for
• After we send your financial reports to Sinosure, they will conduct a credit investigation which can take up to 21 days
• You will need to sign a contract after negotiating the postponed payment terms with your China-based supplier
• The supplier will launch the credit limit that is insured by Sinosure, in order to export your goods
• Once you have paid your deposit, your supplier will ship your products. At this stage, full payment is not required
• The only thing remaining after this is for you to pay the balance as stipulated in your deferred payment terms

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.

Because companies based in Canada are not obligated to make their financial information readily available or publish their company details in open sources, Sinosure found it difficult to access data on their company.

There was also a mistake made in terms of the telephone number provided during the application process by the Canada-based company. The incorrect phone number led Sinosure to decline their credit limit.

We set about manually putting together the company's financial data and gathering the required company documents in view of helping the company pass the credit investigation. What made this process challenging was the fact that Sinosure did not issue the credit limit for the first application. As a result, we had to pursue other means to initiate the investigation again.

Our team appealed to Sinosure to recommence the credit evaluation process and supported our client throughout the appeal. Sinosure then re-evaluated the client's business, taking into consideration the extra reports and documents we had provided them with. This led Sinosure to grant our client a credit limit.