Sinosure Turkey: How Importers Can Defer Payments to Suppliers in China

In recent years, the economic ties between Turkey and China have been growing. By 2023, China stands as Turkey's largest trading partner in Asia and its second-largest import partner. Notably, Turkey actively participates in the Belt and Road Initiative (BRI), with BRI investments totaling $4 billion as of summer 2022, contributing to approximately 1.3 percent of the total BRI investments worldwide.

Bilateral trade between China and Turkey has experienced remarkable growth, witnessing a doubling of imports from China between 2019 and 2022. The United Nations COMTRADE database reports that Turkey's imports from China in 2022 reached $41.35 billion.

Despite the increase in import duties in the country, trade between China and Turkey continued to develop. In October 2023 alone, China exported goods worth $2.83 billion to Turkey, showcasing the resilience of the trade relationship. The top exports during this period included telephones, computers, nitrogenous fertilizers, non-retail synthetic filament yarn, and polycarboxylic acids.

The economic collaboration between China and Turkey received a significant boost with the signing of the Belt and Road Memorandum of Understanding. Chinese companies have since invested over $3 billion in Turkey, demonstrating a diversified interest in sectors such as finance, manufacturing, energy, electronics, and infrastructure. This investment trend continues to rise, with Turkey now hosting more than 1,200 Chinese companies.

With Sinosure being both the key player of the Belt and Road Initiative and the largest credit insurance corporation in China, Turkey’s importing businesses continue to develop.

Initially, Sinosure was established by the Chinese government to strengthen international trade. Today it continues to provide export insurance for Chinese companies engaged in supplying goods, technology, and services to many countries, including Turkey. Furthermore, Sinosure serves as a valuable resource for backing overseas investments, contributing to the success of trade endeavors between China and Turkey.

The Sinosure short-term credit insurance tool simplifies the process of helping companies in Turkey secure better payment terms from their Chinese suppliers. This tool allows businesses to easily defer payments to suppliers for a period of 90 to 120 days, supported by a credit limit granted by the supplier and backed by a Sinosure guarantee.

The Sinosure short-term credit insurance tool streamlines the process for Turkish companies seeking improved payment terms from Chinese suppliers. This tool allows businesses to defer payments for 90 to 120 days, with a credit limit backed by a Sinosure guarantee.

Short-term credit insurance brings various advantages to companies in Turkey. The most significant benefit is that, upon approval for a credit limit with a Chinese supplier, importers can delay payments and settle them once the agreed-upon deferral period concludes. The eligibility for deferred payment terms depends on the approval of a credit limit.

Credit limits issued by Sinosure for contracts with Chinese suppliers represent the maximum trade loans available under the Sinosure insurance agreement. For Turkish companies seeking a credit limit, the process involves undergoing evaluation and a credit investigation. This leads to the assignment of a credit rating and the acquisition of a credit limit, which is then coordinated with the supplier.

Does your company import products from China? Axton Global offers the quickest way to get approved for a short-term trade credit. Gain approval efficiently and stress-free, as Axton Global's insurance consultancy services handle the complexities for you. Book a free consultation with our professionals to learn more.