Discover how we supported a European client with Open Account (OA) payment terms backed by export credit insurance, enabling a $650,000 OEM TV order with reduced risk and scalable growth.
Introduction
In international trade, one of the biggest challenges for buyers and suppliers is balancing cash flow, risk control, and business growth. This case study demonstrates how we successfully supported an Italian client in scaling their business through Open Account (OA) payment terms, backed by export credit insurance.
Background: From Small Orders to Strategic Partnership
Our cooperation with the client began with standard OEM TV orders under traditional payment terms. Over time, as trust was established and transaction history accumulated, the client expanded rapidly in their local market.
However, like many growing distributors, they encountered a critical challenge:
insufficient working capital to support larger order volumes.
The Challenge: Growth Limited by Cash Flow
Despite strong sales performance, the client faced:
Increasing demand from their market
Limited liquidity for upfront payments
Pressure to scale operations quickly
At this stage, traditional payment methods such as T/T or L/C were no longer optimal for their expansion.
Our Solution: Open Account (OA) with Credit Insurance Support
Based on our long-term cooperation and understanding of the client’s business model, we proposed an Open Account (OA) solution.
To mitigate risk, we partnered with China Export & Credit Insurance Corporation to insure the transaction.
Risk Control Process
The OA approval process included:
Full client background submission
Company structure and ownership review
Financial performance evaluation
Local market investigation in Italy
The entire process took approximately 2–3 weeks, after which the client was granted a credit limit.
Execution: $650,000 OEM TV Order
With the approved credit line:
Order value: $650,000
Production: OEM TV manufacturing
Payment terms: Open Account
We proceeded with:
Material procurement
Production scheduling
Quality control
Shipment and delivery
Financing & Cash Flow Optimization
After shipment, we submitted all required documents to Sinosure
Upon approval:
Service and insurance fees were deducted
Remaining funds were released to our company account
This allowed us to maintain stable production cash flow while supporting the client’s growth.
Risk Management: Continuous Monitoring
OA transactions require ongoing risk control. We maintained:
Frequent communication with the client
Monitoring of market conditions
Evaluation of business performance
This ensured early detection of any potential risks.
Result: A Win-Win Growth Model
The outcome was highly successful:
The client completed full payment within agreed terms
Their business expanded significantly
Team size and operations scaled up
Our partnership strengthened further
Conclusion
This case proves that with the right structure, Open Account (OA) is not just a payment method—it’s a growth strategy.
For qualified partners, combining OEM manufacturing with export credit insurance creates a powerful model for long-term success.