Key Ways Indonesian Businesses Obtain Short-Term Trade Credits from Suppliers backed by Sinosure

Indonesia's GDP per capita has grown significantly over the past 20 years, becoming five times larger than it was two decades ago. Alongside Indonesia's economic growth, not only have the country's imports from China grown, but the demand for easy-to-use, handy financial tools – such as the SINOSURE trade credit insurance – has grown as well.

The country is a critical part of the Belt and Road Initiative (BRI), which continues to develop and grow. Alongside this development, the trading relationship between China and Indonesia is also improving. This relationship hasn't only strengthened, it has thrived, and the result of this relationship has led Indonesia-based companies to receive more and more backing from companies in China that partake in the BRI.

With Sinosure being both the mainstay of the Belt and Road Initiative and the largest credit insurance corporation in China, Indonesian businesses continue to prosper.

Sinosure, also known as the China Export and Credit Insurance Corporation, was set up by the government in China to bolster foreign trade. Today, it is supporting economic cooperation, as well as issuing export insurance for Chinese companies who supply goods, technology and services. It is also used to back overseas investments.

The Sinosure short term credit insurance tool facilitates the process of assisting companies to receive improved repayment terms from Chinese suppliers. The tool enables businesses to postpone their payments to suppliers for between 90 to 120 days with a credit limit, backed by Sinosure insurance coverage.

Short-term credit insurance offers companies in Indonesia a vast range of benefits. The critical benefit is that once approved for a credit limit with your Chinese supplier, you can receive postponed payment terms and then make payment once the deferred period has finished. Getting deferred payment terms is determined by a credit limit approval.

Credit limits represent the maximum volume of deferred payment provided under the SINOSURE insurance coverage. To be considered for a credit limit, Indonesian importers undergo evaluation and a credit investigation with the insurance company. Subsequently, they are assigned a credit rating, which is then coordinated with the supplier.