Why do traders take out credit insurance?

Why take out a credit insurance policy:

1. To prevent bad trade debt by having buyers vetted by the credit insurer to assess if the buyer can pay on time each time a sale is made to them
2. To enhance their credit control and cash flow positions. By insuring receivables against unexpected customer insolvencies and undue delays (protracted default) the trader gets relief from the risk of non-payment
3. To be compensated for insured losses
4. To obtain objective credit risk assessment on the buyer
5. To sell more safely to new customers – local and export
6. To expand sales to existing customers
7. To develop a trusting business relationship
8. If needed, to acquire additional working capital by using a trade credit insurance policy as collateral for its bank financing package