A Guide to Sinosure-Backed Supplier Trade Credit for UAE Importers
by Axton Global
There is a vast range of international companies that choose to set up UAE-based entities in order to import goods from China. Various motives back these decisions. Not only is the UAE a fiscal paradise or tax haven, but it also offers free trade zones and has the ideal, developed and advanced infrastructure to support businesses. Add to this the fact that UAE-Africa trade is increasing, with the UAE becoming a gateway to Africa, and it's easy to see why the flow of import through UAE-based entities is on the rise from China.
Indian companies, as well, choose to establish UAE-based entities – mainly due to the taxation differences. It is for this reason that imported Chinese goods travel through those UAE-based entities.
The result of this is a demand for trade credits, particularly because banks in the UAE are barely offering them to UAE-based trading companies.
Meanwhile, the China-UAE relationship is flourishing. This has led companies in the UAE to receive more support in regards to their importation of goods from China. Sinosure (which is a Chinese Export Credit Insurance corporation) is one type of support that is assisting UAE-based companies.
Indian companies, as well, choose to establish UAE-based entities – mainly due to the taxation differences. It is for this reason that imported Chinese goods travel through those UAE-based entities.
The result of this is a demand for trade credits, particularly because banks in the UAE are barely offering them to UAE-based trading companies.
Meanwhile, the China-UAE relationship is flourishing. This has led companies in the UAE to receive more support in regards to their importation of goods from China. Sinosure (which is a Chinese Export Credit Insurance corporation) is one type of support that is assisting UAE-based companies.
If your company imports goods from China, Axton Global provides comprehensive consulting services on how to obtain supplier trade credit. Allow Axton Global’s consulting services to help you navigate the process efficiently and understand the requirements involved. Get more facts on our page or book a consultation.
How to solve two crucial obstacles
Sinosure often cannot access or appraise financial reports of UAE companies
Given that for some UAE companies distributing or publishing their fiscal reports is not compulsory, Sinosure can in some cases struggle to appraise these financial reports or even initiate their evaluation. For this reason, Sinosure cannot issue a credit limit to these companies.
Axton Global provides consulting to UAE organizations to prepare for the credit review process. This drastically reduces the difficulty UAE companies face when clearing this first hurdle.
The UAE company may face complications when making transactions
The second obstacle is that the importer may face challenges when making transactions for imports using the UAE entity's name. The main reason for such complications is, if you have chosen to register the UAE company name with Sinosure, Sinosure may decline your shipping documents – (as the real consignee is the international importer).
Receiving the shipment successfully therefore relies on particular documents that give the consignee authorisation.
Axton Global's proficient consultancy team clarifies the process to make receiving shipments effortless for your company.
Given that for some UAE companies distributing or publishing their fiscal reports is not compulsory, Sinosure can in some cases struggle to appraise these financial reports or even initiate their evaluation. For this reason, Sinosure cannot issue a credit limit to these companies.
Axton Global provides consulting to UAE organizations to prepare for the credit review process. This drastically reduces the difficulty UAE companies face when clearing this first hurdle.
The UAE company may face complications when making transactions
The second obstacle is that the importer may face challenges when making transactions for imports using the UAE entity's name. The main reason for such complications is, if you have chosen to register the UAE company name with Sinosure, Sinosure may decline your shipping documents – (as the real consignee is the international importer).
Receiving the shipment successfully therefore relies on particular documents that give the consignee authorisation.
Axton Global's proficient consultancy team clarifies the process to make receiving shipments effortless for your company.
If you are a company with an established UAE-based entity, and want to receive imports from China, Axton Global is the ideal choice to help you overcome these challenges. Take a look at our page and find out more about our consultancy services.
We help importers from all over the world to improve their trading terms with Chinese suppliers and extend payment terms to 90 or 120 days.
We provide comprehensive consulting services regarding trade credit insurance.
Our Services
-
- Sinosure credit assessment and credit limit approval process to secure supplier trade credit.
- Advisory on Sinosure-related matters and structuring of complex supplier trade credit transactions.
Contact Us
Book a free online consultation with our specialist.
Axton Global is an international consulting company helping importers worldwide secure trade credit terms with Chinese suppliers.
We serve customers from 82 countries across 5 continents.
info@axtongl.com
We serve customers from 82 countries across 5 continents.
info@axtongl.com