What is SINOSURE insurance?

Sinosure is the China Export & Credit Insurance Corporation. It provides insurance coverage for trade credit transactions between Chinese sellers and global buyers.

With the Sinosure guarantee, importers worldwide can get deferred payment terms from their Chinese suppliers, typically ranging from 90 to 120 days.

Sinosure was founded in 2001. Today, it is a key player in China's export support system.

Sinosure is a state-owned national export credit agency (ECA). Its mission is to encourage more exports by providing Chinese manufacturers with protection against non-payment from their overseas partners.

Similar export credit agencies work in many developed countries worldwide. The most well-known ECAs are Euler Hermes (Germany), COFACE (France), Atradius (Netherlands), Eximbank (USA), NEXI (Japan), ECGD (UK), and others.

For importers worldwide, working with Sinosure credit insurance allows them to facilitate their business development. By engaging with Sinosure, companies can receive goods from Chinese suppliers and pay later within supply contracts on export credit terms.

The typical deferred payment period ranges from 90 to 120 days.

This arrangement means that importers are not required to make upfront payments. Such flexibility enables them to manage their cash flow effectively and conduct ongoing financial operations while awaiting the arrival of goods from China.

Chinese factories face intense competition both domestically and globally. To retain customers and encourage long-term partnerships, they can provide deferred payment options.

However, many suppliers hesitate to offer deferments because they lack knowledge about overseas companies and may not have the expertise to assess their financial stability. Additionally, they have typical concerns about potential credit risks and are unwilling to take on such risks.

Sinosure provides a solution to these concerns. When a Chinese supplier enters into a supply contract through Sinosure, they are protected from buyer default and other commercial and political risks — Sinosure covers them all.

As a result, Chinese suppliers are more willing to offer deferred payment terms to their importers and increase trade turnover. Importers gain more trust from their Chinese partners and can negotiate more favorable terms. It's a win-win situation.

1. Sinosure is a government-owned company and highly trusted by Chinese suppliers.

2. With over 30 offices across China, Sinosure is accessible for all Chinese factories and exporters.

3. Sinosure is supported by the government and offers training programs for Chinese suppliers. So, practically all manufacturers in China know about this insurance tool and understand how to use it.

4. Sinosure focuses on supporting small businesses, unlike other similar entities. It offers favorable terms to small enterprises and allows even small importers to defer payments with Sinosure's guarantee.

5. Sinosure holds the 1st place among national ECAs globally. According to the Berne Union, the total insured amount of Sinosure has been continuously ranked top among ECA members since 2015.

6. Sinosure provides substantial credit limits for importers. Since its mission is to promote exports rather than solely profit-making, it approves higher credit limits compared to commercial insurers.