Case Study: Scaling Orders with Insured Terms (from 30 to 120 Days)
When Sarah Chen founded her home goods import company in 2022, she faced the same challenge as most new importers: limited cash flow. Despite strong demand for her products, she could only afford to order $30,000 worth of inventory per month. Here's how Sinosure-backed payment terms helped her scale to $120,000 per month in just 9 months.
The Challenge: Cash Flow Constraints
Before Sinosure:
- • Payment Terms: 30% deposit, 70% before shipment
- • Monthly Orders: $30,000 (limited by available cash)
- • Cash Tied Up: $21,000 per order cycle
- • Growth Rate: Slow, constrained by working capital
- • Supplier Relationships: Limited negotiating power
Sarah's products were selling well—she could easily move $100,000+ worth of inventory per month if she had it. But with 30% deposits and 70% pre-shipment payments, she was constantly waiting for sales revenue to fund the next order. This created a frustrating cycle where demand exceeded her ability to supply.
The Solution: Sinosure Registration
In January 2023, Sarah learned about Sinosure through a trade show contact. After researching the program, she decided to apply for a Buyer ID. The process took 14 days and required:
- • Business registration documents
- • 2 years of financial statements
- • Bank reference letter
- • Trade references from existing suppliers
Sinosure approved her application with a $200,000 credit limit—more than enough to support her growth plans.
The Transformation
After Sinosure:
- • Payment Terms: 120 days after shipment
- • Monthly Orders: $120,000 (4x increase)
- • Cash Tied Up: $0 upfront
- • Growth Rate: 300% in 9 months
- • Supplier Relationships: Preferred buyer status with multiple suppliers
Month-by-Month Growth
Month 1-2:
Transitioned existing suppliers to Sinosure terms. Placed first $50,000 order with no upfront payment.
Month 3-4:
Increased orders to $75,000/month. Used freed-up cash to expand product line and marketing.
Month 5-6:
Scaled to $100,000/month. Added two new suppliers, all offering 120-day terms.
Month 7-9:
Reached $120,000/month. Hired first employee. Expanded to Amazon and additional sales channels.
Key Success Factors
Sarah attributes her success to several factors:
- 1.Cash Flow Visibility: With 120-day terms, she could accurately forecast cash needs and plan inventory purchases 3-4 months ahead.
- 2.Supplier Confidence: Sinosure registration made her a preferred buyer. Suppliers were more willing to negotiate prices and prioritize her orders.
- 3.Reinvestment Capacity: Money that would have been tied up in deposits was instead invested in marketing, which drove more sales.
- 4.Risk Management: Sinosure's insurance gave her suppliers confidence to extend terms, even as order sizes grew significantly.
Lessons Learned
"The biggest lesson was that cash flow is more important than profit margin," Sarah reflects. "I used to focus on negotiating the lowest prices, but having 120-day terms was worth far more than saving 2-3% on unit costs."
She also emphasizes the importance of maintaining good payment discipline: "Sinosure gives you credit, but you still need to pay on time. I set up automated reminders and always paid 5 days early to maintain my excellent standing."
Current Status & Future Plans
As of March 2024, Sarah's company is on track to do $1.8 million in annual revenue—up from $360,000 the previous year. She's now working with Sinosure to increase her credit limit to $500,000 to support further expansion into new product categories.