How Sinosure is Streamlining International Trade for Singapore-based Companies

Singapore is a huge trading hub. Its trading hub status is probably as old as the settlement itself. In fact, its global commerce has been called the lifeblood of Singapore, and it is because Singapore has put in place shrewd economic policies that SMEs and MNCs call Singapore their home.

The country's import volume from China is enormous and it has now become a part of the Belt and Road initiative, which directly impacts its ecosystem. Companies such as DBS Singapore have even signed cooperation agreements with Sinosure to work on projects that are mid and long-term, with these projects being insured by Sinosure. However, there are still many, perhaps thousands of Singapore-based companies that import goods and materials from China, and the vast majority don't have enough working capital.

As a result, such companies might need, but lack, short-term trade credits, which is exactly how Sinosure makes a difference. It provides trade credit insurance, making it simpler for Singapore companies to obtain deferred payment from Chinese suppliers. Here is how Sinosure is streamlining international trade for Singapore companies.

Sinosure is a Chinese state-owned insurance company that arranges export insurance for Chinese exporters. It guarantees that suppliers always receive payment for their goods – even if overseas buyers default on their payment obligations.

There are a few steps involved in setting up a credit:

• Your business will need to be evaluated in a credit appraisal
• You will be provided with a credit rating
• After this, the insurance company will establish a credit limit
• The Chinese exporter will register their contract with the insurance company
• They will obtain insurance for the invoice
• You will make a deposit for the goods you have solicited
• Your goods will be delivered by the exporter
• After the period of postponed or deferred payment you will make your payment

Given that it is not compulsory for Singapore-based companies to publish or reveal their financial standings, or make information about their business' finances known, this can stand in the way of a Sinosure credit estimation.