A First in Zhejiang! SINOSURE Provides an “Insurance Safety Net” for Advance Payments on Agricultural Imports

Recently, Ningbo Lydodo E-Commerce Co., Ltd. (“Lydodo”) successfully obtained Zhejiang Province’s first advance payment insurance policy for agricultural imports issued by China Export & Credit Insurance Corporation (“SINOSURE”). The policy provides credit risk protection for USD 10 million in import advance payments. This marks an expansion of policy-based insurance from its traditional role of supporting exports to empowering imports, providing a strong boost to Lydodo’s cross-border procurement operations.

As a core subsidiary of IBI, one of China’s leading industrial internet platform operators, Lydodo focuses on the cross-border procurement of bulk agricultural commodities. It has long imported products such as palm oil, peanuts and sesame from Southeast Asia, South America, Central Asia and Africa, with average annual imports exceeding USD 10 million.

However, as its import volume continues to grow, associated risks have also increased. Bulk agricultural commodities are generally settled on a “payment before delivery” basis, tying up substantial working capital. Political instability in source countries and frequent adjustments to export policies may also cause supply chain disruptions. In addition, companies often have limited visibility into the operating conditions of overseas suppliers. The risk of advance payments being made without the corresponding goods being delivered has therefore remained a significant concern, placing considerable pressure on the stability of import operations.

“After gaining an in-depth understanding of Lydodo’s business model and key risk-control challenges, SINOSURE Ningbo Branch developed a customized insurance solution for us. On the one hand, it assisted us in optimizing contractual terms, improving our receivables management system and screening reliable business partners through its global credit information network, thereby controlling risks at the source. On the other hand, the policy explicitly covers advance payment losses caused by the bankruptcy or payment default of overseas suppliers, as well as war, civil unrest, government expropriation and foreign exchange restrictions in the countries of origin. This has established a robust safeguard for the security of our funds.”

The successful issuance of the policy demonstrates how policy-based insurance can significantly enhance enterprises’ bargaining power and supply chain resilience in the international agricultural commodities market. It also provides solid support for Lydodo to further expand its import scale and optimize its global procurement network.

Looking ahead, Lydodo will continue working with SINOSURE to explore innovative solutions across broader areas of agricultural imports and exports, advancing into global markets with greater stability and confidence.