SINOSURE Credit insurance tool - what is it and how buyers from all over the world can use it to improve trading terms with their suppliers from China.

1. SINOSURE — China Export & Credit Insurance Corporation
Sinosure is a state-owned Chinese export credit insurance corporation. Sinosure insures
Chinese suppliers (exporters) against credit and political risks in international trade. If
the buyer’s company becomes financially insolvent, Sinosure guarantees the supplier
payment under the contract.
Under the guarantee, Sinosure insured Chinese suppliers can offer deferred payment
terms for 90, 120, or 180 days.
Why is this important for buyers?
Lack of working capital is one of the main problems of international trade. Buyers want
to receive goods from China with deferred payment, while Chinese manufacturers want
to receive a full prepayment from the customer. The main reason for Chinese suppliers
not wanting to provide deferred payment is the risk of non-payment on the side of
overseas buyers. Very often, Chinese manufacturers do not have enough experience to
independently verify the creditworthiness of their buyers and decide whether or not to
grant a deferral. And if the buyer is unable to pay, the resulting credit risks can ruin the
supplier’s business.
Sinosure helps solve this problem by providing Chinese exporters with insurance
against the buyer’s non-payment. If there is a guarantee, suppliers are willing to grant
deferrals, taking advantage of the opportunity to increase trade turnover with their
foreign partners.
Nearly all Chinese companies that provide credit to foreign businesses do so because
their invoices are insured by Sinosure
That means that if your company has a Sinosure credit limit, you can get a deferred
payment from your supplier for a period of 90, 120 or even 180 days.
Sinosure credit insurance financing
Many financial institutions in China cooperate with Sinosure and provide trade
financing under Sinosure insurance. If your supplier does not have enough working
capital to offer you a deferred payment, they can contact their bank or other financial
institution that provides this type of service and get financing for the orders.
Sinosure history
Sinosure was founded in 2001 through the merger of the export credit insurance
division of the PICC Corporation (People’s Insurance Company of China) and the export
credit insurance division of the Export-Import Bank of China, as part of China’s WTO
accession program.
Sinosure was founded in 2001 through the merger of the export credit insurance
division of the PICC Corporation (People’s Insurance Company of China) and the export
credit insurance division of the Export-Import Bank of China. As an independent legal
entity, SINOSURE was officially launched on December 18, 2001, and its service
network now covers all of the Chinese provinces.

2. In 2020 Sinosure insured more than $700 billion export credit amount for 140 000
Chinese exporters.
Types of insurance
Sinosure, like similar export credit agencies, provides coverage against political,
commercial, and credit risks. The Sinosure portfolio of insurance instruments includes
short -, medium- and long-term export credit insurance, as well as foreign investment
insurance for Chinese companies.
The insurance covers political risks, such as sanctions, restrictions on money transfers,
expropriation and nationalization, violation of sovereignty, and military actions;
Credit risks, such as the risk of non-payment by the client due to financial insolvency,
bankruptcy, fraud, and other commercial risks.
Axton Global is an international consulting company that helps 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.
For more information please visit https://axtongl.com/