Credit insurance boosts the export of Hunan troops

Moroccan businessmen have clearly tasted the sweetness.
On November 28, as soon as the new intelligent excavator with world-class level produced by Sany Heavy Machinery Co., Ltd. came off the assembly line, foreign users from Morocco and other countries couldn't wait to sign a supply agreement with Sany Heavy Machinery.
Four months ago, Sany Group was looking at the Moroccan market in Africa as a daunting prospect. Liu Zeping, of Sany Heavy Industry's international business department, said that because the importer is an emerging overseas buyer in the African market, Sany has no knowledge of its credit status and is worried about the high risk and difficult to operate, so the company is quite cautious about exploring the African market.
In July, Sany made a breakthrough in its plan to advance into Africa. After China Credit Insurance Corporation (hereinafter referred to as Sinosure) underwrote its export credit risk, Sany Heavy Industry signed two large trade orders worth US$800,000 and US$500,000 with importers respectively due to the reduction of foreign exchange collection risk, and successfully opened up the Algerian and Moroccan markets in Africa.

Broaden export channels
Compared with Sany Heavy Industry, our export performance is not worth mentioning. Tan Xiaoqiong, director of the office of Hunan Xincheng Xiangxiu Import and Export Company, said modestly.
However, in terms of using export credit insurance, a policy-based insurance tool, to broaden the way out, Xincheng Xiangxiu is much earlier than Sany Heavy Industry.
In 2002, Xincheng Xiangxiu learned through the Internet and other channels that it could use export credit insurance, a new means of insurance. After many inquiries, in March last year, he took the initiative to sign an insurance agreement with the Changsha Business Management Department of Sinosure.
With SINOSURE's risk-taking, salesmen can rest assured and boldly use a variety of payment methods to sign contracts with merchants, and they are free of hand. Tan Xiaoqiong said.
Through the insurance of export credit insurance, from January to October this year, Xincheng Xiangxiu has achieved an export performance of more than 8 million US dollars, which is much higher than the export volume of more than 5 million US dollars in 2002. This year's performance is historically better, to be honest, there is no export credit insurance, and some orders are really afraid to take it.

Improve the competitiveness of enterprises
There are many similar examples of companies that use export credit insurance to expand their exports.
Since 2001, Hunan Province Arts and Crafts Import and Export Company has invested in credit insurance for one of its Hong Kong customers, and its annual export volume has soared from 200,000 US dollars to 2 million US dollars as of October this year, and the cumulative export volume has reached 6.4 million US dollars in the past four years.
A Polish buyer of Hunan Textile Import and Export Company has expanded the credit limit of its export credit insurance from $300,000 at the beginning to $900,000 at present, and the cumulative transaction volume has reached $8.5 million.
What are you afraid of? I'm afraid that I won't be able to receive money. The benefit of export credit insurance for export enterprises*5655 is that it reduces the risk of foreign exchange collection, so as to achieve the purpose of expanding exports. Wu Yibiao, chief accountant of the Provincial Department of Commerce, vividly compared that export credit insurance is not only insuring the payment of exporters, but also a propeller for expanding exports.
Because with the transformation of settlement methods, export enterprises have reduced transaction costs and increased export competitiveness.
It is understood that in the past, many foreign economic and trade enterprises in our province lost many foreign trade opportunities due to the limitation of using letters of credit for transactions, and some old customers were also snatched away by export enterprises in other provinces who dared to use cash on delivery (D/P), documents in acceptance (D/A) or credit (O/A) and other settlement methods.
After taking out credit insurance, the risk of foreign exchange collection has been guaranteed, and flexible settlement methods have been adopted, which has attracted back the customers who were originally snatched away, and many orders have been won from other provinces or foreign counterparts. Liu Zhengmao, head of the Changsha business management department of Sinosure, said.

Expand into emerging markets
The second role of export credit insurance is to enhance the ability of enterprises to explore emerging markets. Wu Yibiao said that the development potential of overseas emerging markets is huge, and it is the direction that the export of foreign economic and trade enterprises in our province should focus on developing.
The new business circular of the Provincial Department of Commerce shows that since the beginning of this year, the province's import and export to traditional markets has maintained steady growth, while imports and exports to new markets such as Russia, Latin America, and Oceania have grown rapidly. Export credit insurance has made a significant contribution.
SINOSURE provides financial services under short-term export credit insurance, providing financing convenience for the majority of small and medium-sized export enterprises. Wu Yibiao said: The shortage of funds is a common difficulty for foreign economic and trade enterprises, especially small and medium-sized export enterprises, and credit insurance can help enterprises obtain bank financing while solving the problem of the security of export receipts, thereby promoting their business development.
It is through the financing facilities provided by export credit insurance that Wangcheng Daguang Machinery Factory has received nearly 9 million yuan of credit support from the Bank of China this year, and its business has developed rapidly, with an export trade volume of nearly 2 million US dollars this year. From January to September, by giving full play to the financing function of export credit insurance, small and medium-sized export enterprises in our province obtained a total of 62 million yuan in trade financing.

- Xiaoxiang Morning News Pi Huanran -