How do you get SINOSURE?
You provide us with your company’s financial documentation. Our team carries out a set of documents on your company and sends it to SINOSURE to have your credit limit approved. SINOSURE investigates your company before it can issue you with a credit limit. The credit investigation procedure takes 21 days.
What SINOSURE means?
China Export & Credit Insurance Corporation
China Export & Credit Insurance Corporation (hereinafter referred to as “SINOSURE”) is a state-funded and policy-oriented insurance company established and supported by the state to promote China’s foreign economic and trade development and cooperation.
What is SINOSURE fee?
How much does it cost? SINOSURE credit insurance coverage costs an average of 0.5% to 1.5% of each invoice for 90 days of deferment. The cost may vary depending on the amount of the contract, the country of the buyer, and the size of the insurance policy.
What is Sino insurance?
The China Export Credit Insurance Corporation (Sinosure) is a state-funded insurance company established to support China’s foreign and trade development and cooperation. The Sinosure Overseas Investment Insurance is available for equity and debt investments made by Chinese enterprises in projects outside China.
What does an export credit agency do?
Export Credit Agencies (ECAs) are institutions whose principal objective is to promote exports from their own country. ECAs may be private companies or quasi-governmental institutions, and their precise status varies from country to country.
How does export credit insurance work?
Export credit insurance operates in the same way as trade credit insurance and focuses specifically on trading relationships with customers based overseas. That means that if your customer fails to pay for goods or services that you have exported to them, your insurance company will compensate you.
Is sinosure an ECA?
As a responsible ECA, SINOSURE aligns its strategy with the nation’s commitment of carbon neutral.
What is ECA finance?
From Investopedia.com: “An export credit agency (ECA) is a financial institution that offers financing to domestic companies for international export operations and other activities.
Why export credit insurance is needed?
Export credit insurance protects a seller from the risk of nonpayment by a foreign buyer. The insurance usually covers commercial risks such as buyer insolvency, bankruptcy, or default.
What are the advantages of export credit insurance?
Export credit insurance can help by easing the burden of credit risk management and allowing you to focus on what you do best. A relationship with the Export-Import Bank (EXIM) and its credit management expertise can improve receivables management from buyer assessment to protection to collection.
How is export insurance calculated?
Insurance is calculated as 1.125% – USD 13.00 (rounded off). The total amount of CIF value works out to USD 1313.00. If any local agency commission involved, the same also is added on CIF value of goods – say 2% on FOB – USD 20.00. So the total amount works out to USD 1333.00.
What is a disadvantage of export credit?
Disadvantages of Export Credit Insurance Policy They include: The Policy may not cover high-risk accounts – In most scenarios, the trade credit insurance policies may not be available for accounts with high credit risk. Besides, those that offer the coverage often charge very high fees.
What kind of risk is typically insured by export credit agencies?
What is ECA covered loan?
What Is an Export Credit Agency (ECA)? An export credit agency offers trade finance and other services to facilitate domestic companies’ international exports. Most countries have ECAs that provide loans, loan guarantees and insurance to help eliminate the uncertainty of exporting to other countries.