Sinosure Terms Every Importer Should Know

Sinosure, short for China Export & Credit Insurance Corporation, is a state-owned enterprise in China, which provides export credit insurance services. Its core mission is to protect Chinese businesses from the risks associated with international trade, such as non-payment by foreign buyers, political uncertainties, and commercial disagreements.

With Sinosure, global importers gain the ability to negotiate deferred payment arrangements with Chinese suppliers. So, if you're collaborating with factories in China and considering Sinosure protection for your orders, it's important to acquaint yourself with the specific terms to facilitate smooth communication with your Chinese counterparts.

Export Credit Insurance?

Export credit insurance shields exporters from the risk of non-payment by foreign buyers. It ensures payment for goods or services delivered to buyers abroad by covering the exporter's accounts receivable.

Sinosure, as a Chinese enterprise, specializes in providing export credit insurance for Chinese companies involved in international trade. In case the foreign buyer fails to pay or faces bankruptcy, Sinosure intervenes to cover the losses suffered by the Chinese company.

Sinosure Policy

Sinosure policy is an export credit insurance policy obtained by Chinese exporters. It establishes a contractual agreement between the exporting suppliers and Sinosure. It outlines the terms of the insurance coverage, including the insured amount, premium rates, and other relevant conditions.

Sinosure Credit Limit?

Sinosure credit limit is the highest credit amount that Sinosure agrees to insure for a specific importer. This limit is calculated considering various factors such as the importer's creditworthiness, payment track record, industry standing, country risk, and other pertinent details. Once the Sinosure credit limit is obtained by the importer, Sinosure extends insurance coverage for their orders up to the specified amount.

Sinosure Credit Rating

Sinosure credit rating functions akin to personal credit scores, assessing the creditworthiness of global companies importing goods from China. These ratings gauge the risk level involved in insuring transactions with the company. A higher credit rating indicates lower risk. It means the company can get a higher Sinosure credit limit and negotiate advantageous deferred payment terms with Chinese suppliers.

SinoRating

SinoRating is a special credit rating department of Sinosure. Its job is to evaluate how trustworthy companies are when they import goods from China and request a Sinosure credit limit. SinoRating looks at things like financial stability, payment history, and how well the industry is doing to give ratings. These ratings help Sinosure decide on credit limits and insurance coverage for specific importers' orders.

Risk Assessment

Before agreeing to insure a deal, Sinosure evaluates the risks involved. They consider factors such as the buyer's financial stability, the political situation in their country, and other elements that could impact the transaction. Generally, Sinosure offers export credit insurance to reduce both commercial and political risks linked with international trade deals.

Sinosure Premiums?

Just like with other insurance or financial services, Sinosure requires premiums and fees for their assistance. These premiums are payments made by Chinese suppliers to Sinosure in return for coverage for their exports.

Sinosure Claims Process?

If a deal faces challenges and the buyer can't pay, the Chinese company can start a claims process with Sinosure. This includes showing evidence of financial loss and collaborating with Sinosure to request compensation. Sinosure will then examine the claim and, once confirmed, will pay the Chinese company the owed money.