Sinosure and Payment Terms for Africa: TT, L/C, Insurance (2026)

The main worry for a Chinese factory shipping to a new African buyer is not production or freight. It is whether the money arrives. This guide compares three common tools: telegraphic transfer (TT), the documentary letter of credit (L/C), and Sinosure export credit insurance, from the China Export & Credit Insurance Corporation. The details below come from Sinosure's English site and the International Chamber of Commerce (ICC), stated as of October 2026. Terms, coverage and eligibility change, so confirm with Sinosure, your bank and your accountant before you rely on them.

Payment terms for Africa: the options

TT (telegraphic transfer). The buyer's bank wires money to yours. It is simple and cheap, and exporters usually combine a deposit before production with a balance before shipment or against copies of shipping documents. Risk depends entirely on the terms: money in advance favours the seller; payment after delivery favours the buyer. Our guide on how to get paid safely by African buyers compares the options in more depth.

Letter of credit. The ICC explains that a documentary credit is a bank's undertaking that is independent of the sales contract: payment depends on the documents, not on the underlying trade. The beneficiary (usually the seller) must make a complying presentation, and the credit cannot be amended or cancelled without the beneficiary's agreement. The ICC says banks have a maximum of five banking days after presentation to examine documents, and that most modern documentary credits are issued subject to UCP 600. Read the ICC explanation of documentary credits (updated October 2024).

Open account or credit terms. You ship first and the buyer pays later. This is where credit insurance becomes relevant.

Sinosure export credit insurance: what its page says it covers

Sinosure (China Export & Credit Insurance Corporation) publishes an English page on short-term export credit insurance that lists the risks covered. Commercial risks include buyer bankruptcy or insolvency, buyer payment default, buyer refusal to take delivery, issuing bank bankruptcy, and issuing bank default despite compliant documents or dishonour of a usance L/C. Political risks include payment restrictions imposed by the buyer's or issuing bank's country, import bans or revoked import permits, war, civil war or riot, and third-country payment moratoriums. The page lists coverage of up to 90% for political losses and for commercial losses, with up to 100% under the forfaiting policy and up to 90% under the SME comprehensive cover. Products named for exporters include Comprehensive Cover, SME Comprehensive Cover, Small and Micro Easy Credit and Additional Pre-export Insurance. See the Sinosure short-term export credit insurance page.

The page does not describe premiums, eligibility conditions for specific countries, or how Africa is treated, and we could not open Sinosure's main English pages in our review. We therefore do not make claims about Africa coverage, rates or country limits. Ask Sinosure or an authorised broker directly.

Insurance and the tax refund connection

A Xinhua report (23 April 2022) on a circular released jointly by the State Taxation Administration and other government bodies listed linking export credit insurance with export tax rebate policies among the measures to support foreign trade firms. We explain the refund side in our guide to the China export VAT rebate. Ask your adviser whether insurance and refund filing interact for your company.

Practical L/C checks before you accept one

The ICC article gives several points worth acting on. It recommends, where feasible, limiting document requirements to an invoice and a transport document, so ask the buyer to keep the credit simple. It notes that banks accept only transport documents that do not expressly declare defective goods or packaging, so inspect your cartons before the carrier signs. It says the credit cannot be amended without the beneficiary's agreement, so review the draft credit line by line the day you receive it and request amendments immediately if a date, quantity, port or name does not match your contract. Finally, it explains that if an instalment is not shipped within its allowed period, the credit stops being available for that instalment and any later ones, so be realistic about partial shipments. Your bank can review the credit text before you start production.

Choosing a payment term for a new African buyer

• First order, unknown buyer: favour a deposit plus balance before shipment, or a confirmed L/C if the buyer's bank can issue one and you are comfortable meeting its document conditions.
• Repeat buyer with a good record: consider open account for part of the value, ideally insured.
• Large order: split into stages, and agree inspection and release steps in writing. See our post on structuring the first order.

Be wary of any buyer who pushes for fast shipping before any payment, or who asks you to pay a third party. Verify identity and, where possible, the buyer's bank. When pricing, include the cost of any insurance or bank charges.

Buyer protection on Comilmart

Comilmart has buyer protection on marketplace orders, where payment is held until the buyer confirms delivery within a 7-day window. We do not state here which payment methods or currencies suppliers can use, because that is not confirmed in this article. Ask Comilmart through live chat or /contact-us. This article does not claim that Comilmart supports any payment instrument such as a letter of credit or credit insurance, and you remain responsible for your own bank, insurance and shipping arrangements.

Frequently asked questions

What is Sinosure? Sinosure is the China Export & Credit Insurance Corporation. Its English website lists products for short-term export credit insurance.

Does Sinosure cover buyers in Africa? We could not confirm country-level coverage. Ask Sinosure or an authorised broker.

Is a letter of credit safer than TT? It can protect a seller if the documents comply, but the ICC notes payment depends on documents, so errors can cause refusal. Practice before the first presentation.

Should I accept open account terms? Only with a known buyer and, ideally, insurance. For a first order, consider deposit plus balance.

Can I use RMB or a specific payment method on Comilmart? Ask Comilmart through live chat or /contact-us. It is not confirmed here.

Getting started

Whether you choose a deposit, a letter of credit or Sinosure export credit insurance, sound payment terms for Africa are easier to agree when buyers come to you through a verified channel. Learn more at /sell-to-africa and apply at /apply-manufacturer. Applying is free and the form states that review takes about 24 to 48 hours. Comilmart cannot guarantee orders, payment or buyers, so protect each deal with sensible terms.