What is Sinosure credit limit and how to obtain it
by Axton Global
A Sinosure credit limit is the maximum amount of Sinosure-backed trade credits available to your company from Chinese suppliers. Once your company obtains the credit limit, you can import goods from China under deferred payment terms.
Why you should obtain Sinosure credit limit
With the Sinosure credit limit, your company can negotiate payment deferrals of 60, 90, or 120 days with Chinese suppliers.
You import goods from China within the specified amount determined by the credit limit and pay later, once the agreed-upon period comes to an end. Importantly, the payment period is not determined by Sinosure but is mutually defined between your company and the Chinese supplier.
You import goods from China within the specified amount determined by the credit limit and pay later, once the agreed-upon period comes to an end. Importantly, the payment period is not determined by Sinosure but is mutually defined between your company and the Chinese supplier.
Key features of Sinosure credit limit
The Sinosure credit limit is set individually for your company. To obtain it, your company must first register in the Sinosure database and undergo a credit investigation procedure, which assesses your creditworthiness.
The credit limit can be used by one or multiple Chinese suppliers who have a valid Sinosure insurance policy. For example, if your limit is $1 million, you can allocate it across contracts with your suppliers until the total amount of trade credit reaches $1 million.
The Sinosure credit limit is revolving. This means that once you make a payment to your supplier for an order, the limit becomes available for use again.
The credit limit is set indefinitely. If your company consistently places orders under Sinosure insurance guarantee without any financial defaults throughout the year, the credit limit automatically extends for the following year.
The credit limit can be used by one or multiple Chinese suppliers who have a valid Sinosure insurance policy. For example, if your limit is $1 million, you can allocate it across contracts with your suppliers until the total amount of trade credit reaches $1 million.
The Sinosure credit limit is revolving. This means that once you make a payment to your supplier for an order, the limit becomes available for use again.
The credit limit is set indefinitely. If your company consistently places orders under Sinosure insurance guarantee without any financial defaults throughout the year, the credit limit automatically extends for the following year.
How to obtain Sinosure credit limit
Credit investigation procedure
Sinosure's Underwriting Department reviews your company's details and financial reports. The investigation typically spans 21 days.
Credit rating assignment
Once your company undergoes a credit investigation procedure successfully, Sinosure assigns a credit rating to your company, which determines your creditworthiness.
Credit limit allocation
Sinosure issues a credit limit tailored to your company's financial standing. This limit allows you to buy goods from Chinese suppliers with deferred payment terms.
Sinosure's Underwriting Department reviews your company's details and financial reports. The investigation typically spans 21 days.
Credit rating assignment
Once your company undergoes a credit investigation procedure successfully, Sinosure assigns a credit rating to your company, which determines your creditworthiness.
Credit limit allocation
Sinosure issues a credit limit tailored to your company's financial standing. This limit allows you to buy goods from Chinese suppliers with deferred payment terms.
Which factors influence credit limit setup
Financial health
Your company must have been operational for at least one financial year and demonstrate profitability.
Turnover
Your company must have achieved an annual turnover exceeding $1 million in the last financial year.
Credit history
Your company must have a positive track record of timely payments to suppliers and no outstanding debts.
Trade history
Your company's past engagements with Chinese factories are considered, though they are not the primary assessment factor.
Your company must have been operational for at least one financial year and demonstrate profitability.
Turnover
Your company must have achieved an annual turnover exceeding $1 million in the last financial year.
Credit history
Your company must have a positive track record of timely payments to suppliers and no outstanding debts.
Trade history
Your company's past engagements with Chinese factories are considered, though they are not the primary assessment factor.
Need to learn more? Get a free online consultation.
We help importers from all over the world to improve their trading terms with Chinese suppliers and extend payments to the supplier for 90 to 180 days using the Sinosure credit insurance tool
We help companies to obtain a new Sinosure credit limit, increase existing credit and provide comprehensive consulting services regarding Sinosure credit insurance
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Obtain a new Sinosure credit limit for your company to negotiate deferred payments.
Expand your company's current Sinosure credit limit if you need to supply more goods.
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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