How Sinosure Enables 120-Day Terms Without Bank Loans
For importers looking to scale their business, cash flow is often the biggest constraint. Traditional bank loans come with strict requirements, high interest rates, and lengthy approval processes. But there's a better way: Sinosure-backed trade credit.
What is Sinosure?
Sinosure (China Export & Credit Insurance Corporation) is the world's largest export credit insurance provider, backed by the Chinese government. It protects Chinese exporters against payment default risk, which allows them to offer extended payment terms to qualified international buyers.
How It Works: The Three-Party System
- 1.You (the Importer) get registered with Sinosure and receive a Buyer ID with an approved credit limit.
- 2.Your Chinese Supplier enrolls in Sinosure's export insurance program and insures your transactions.
- 3.Sinosure guarantees payment to your supplier if you default, which gives them confidence to extend 90-120 day payment terms.
Key Benefits for Importers
- ✓No Bank Loans Required: You don't need to borrow money or pledge collateral. The credit comes directly from your supplier.
- ✓Preserve Cash Flow: Pay 90-120 days after shipment instead of upfront, allowing you to sell goods before paying for them.
- ✓Scale Faster: With improved cash flow, you can place larger orders and grow your business without capital constraints.
- ✓Build Supplier Trust: Sinosure registration demonstrates creditworthiness and makes you a preferred buyer.
Real-World Example
Before Sinosure: A US-based electronics importer was ordering $50,000 worth of goods per month, paying 30% upfront and 70% before shipment. This tied up $35,000 in cash for each order.
After Sinosure: With 120-day terms, they could place orders without upfront payment, sell the goods, and pay suppliers from revenue. Within 6 months, they scaled to $150,000 per month in orders—a 3x increase—without taking on debt.
Getting Started
The registration process typically takes 7-21 days and requires basic business documentation. Once approved, you'll receive a Buyer ID and credit limit that you can use with any Sinosure-enrolled Chinese supplier.