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

Indonesia's GDP per capita has grown significantly over the past 20 years. It is, in fact, five times bigger than it was 20 years 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 tool – have 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 also improves. 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 insuranse 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 180 days effortlessly with a credit limit issued by their supplier, backed by a Sinosure guarantee.

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 issued by your Chinese supplier are the maximum amount of trade loans provided by Chinese suppliers under the Sinosure insurance agreement.
If you would like to be considered for a credit limit, you will need to be evaluated and undergo a credit investigation. You will then obtain a credit rating, which will be arranged with your supplier.

Does your company import products from China? Axton Global is the fastest way to get approved for your short-term trade credit. Get approved in a fast and stress-free way and let Axton Global's insurance consultancy services carry out the hard work for you. Book a free consultation with our professionals to discover more.