Credit insurance assists companies in several ways. It protects against the infrequent, but highly severe, catastrophic credit loss (i.e. K-Mart, Enron). It can also enhance a company's financing relationship. Insured receivables, especially international receivables, make much stronger collateral than non-insured receivables. By making these receivables eligible, it may increase your borrowing base. Most importantly it enables a business to expand both its sales, as well as profits. Transferring the risk of non-payment allows companies to sell more to both existing customers and to new clients. In many cases the additional profit generated by the policy more than pays the premium.