If you’ve imported from China, then you know the payment system and the consequences for working capital. Credit terms from most suppliers are 30% paid up front before manufacturing, and the remaining 70% paid before shipment. This can be difficult for firms who utilize the small amount of working capital that they have.

Fortunately, there is a system that is tailored specifically for this. Many importing firms do not even know that this solution is available. China’s government provides a safety net called Sinosure, which allows exporters to provide 90-120 day terms of payment. 

What Is Sinosure and Why Does It Matter for International Trade

Sinosure stands for the China Export and Credit Insurance Corporation. It is a state-owned institution established in December 2001 under China’s Ministry of Finance. Its core purpose is to support Chinese exports by insuring suppliers against the risk of non-payment by foreign buyers. When a supplier holds a Sinosure policy, they are protected if an international buyer fails to pay. 

This gives suppliers the confidence to offer deferred payment terms they would otherwise never agree to. Sinosure currently insures over USD 1 trillion in export transactions annually. And it serves more than 227,000 Chinese exporters that is making it the largest export credit agency in the world by insured volume.

How Sinosure Actually Works Between Suppliers and Buyers

A Chinese supplier registers with Sinosure and takes out an export credit insurance policy. Before extending deferred terms to a foreign buyer, Sinosure assesses and approves that buyer’s creditworthiness. Once approved, the buyer receives a Sinosure credit limit. That credit limit tells the supplier exactly how much trade credit they can extend and under what conditions. 

Once it is in place, the importer can purchase goods on 90 or 120-day deferred payment terms instead of paying upfront. The supplier stays protected, and the importer gets the cash flow flexibility they need. If you want to understand the full process from start to finish, you can learn more about what is involved at each stage.

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Key Benefits for Importers Using Sinosure-Backed Terms

Getting a Sinosure credit limit in place opens up real, practical advantages that directly affect how a business operates day to day.

Cash Flow, Buyer Credit, and Competitive Advantages

  • Deferred payments of 90 to 120 days: Receive goods, sell them, generate revenue, then pay your supplier
  • No additional financing costs: The supplier extends trade credit directly, so you are not paying bank interest on top of your order value
  • Larger order capacity: Freed-up capital means you can place the next order sooner without waiting on payment cycles
  • Stronger supplier relationships: Sinosure-backed terms build trust and make suppliers more flexible on pricing and lead times
  • Access to suppliers who otherwise require full prepayment: Many Chinese manufacturers will simply not offer open account terms without Sinosure coverage in place

How Sinosure Benefits Chinese Exporters Too

Chinese suppliers who hold Sinosure policies are actively encouraged by the government to offer trade credit to international buyers. For suppliers, Sinosure removes the financial risk of extending deferred terms entirely. If a buyer fails to pay, Sinosure covers up to 90% of the insured loss. This means suppliers can grow their export business without carrying full credit risk themselves. 

How to Apply and What Documentation You Will Need

Sinosure is not able to be directly contacted, and in order to apply, suppliers must work directly with the Sinosure government, or must work with a third-party intermediary that also knows Sinosure. The credit limit process is kicked off with a credit investigation of the importing firm’s financial health.

Sinosure’s Popular Industries:

Sinosure’s documents typically include at least the last 1-2 years of financial statements and verification of banking history. After being in business for at least a year with revenues of USD 1 million or greater, Sinosure financing can be achieved. Sinosure’s terms can also be found in:

  • Consumer goods and retail
  • Industrial equipment and machinery
  • Construction materials
  • Textiles and apparel
  • Automotive parts

Working With an Intermediary to Get Your Credit Limit Set Up

Because foreign companies cannot approach Sinosure directly, working with a qualified intermediary is the most practical route. These companies manage the credit investigation, communicate with Sinosure on your behalf, and make sure the application is put together correctly. A good intermediary can also transfer your existing credit limit between different Chinese suppliers. It is useful when you are working with multiple manufacturers. 

Conclusion

Sinosure is the backbone of a huge portion of China’s export trade, and businesses that know how to use it have a real edge. Moving from full prepayment to 90 or 120-day deferred terms frees up working capital, helps you scale faster, and puts you in a stronger position with your suppliers. If you are still paying upfront, make sure getting a Sinosure credit limit assessed is on your agenda this year.