Credit Insurance vs. Scoring Software Comparison
To protect against B2B payment defaults, two approaches dominate: credit insurance and scoring software. Many companies hesitate between these solutions, when in reality they are complementary. This comparison highlights their key differences.
Join the waiting listCredit insurance: coverage after default
Provides compensation in the event of an unpaid invoice.
Offers financial security, but after the fact.
Can be costly and slow to activate.
Principle of credit insurance
Credit insurance intervenes after a payment default has occurred, offering financial compensation but not preventing the risk upstream.
Principle of predictive scoring
The scoring software analyzes data in real time to anticipate risks and prevent payment defaults before they occur.
Scoring software: anticipate before default
Evaluates solvency in real time.
Detects weak signals and reduces upstream risks.
More affordable cost, rapid deployment.
Detailed comparison
| Criteria | Credit insurance | RocketFin software |
|---|---|---|
| Cost | 2-3% of insured turnover + deductible | Fixed monthly subscription |
| Speed | Several weeks/months | Instantaneous (Real-time API) |
| Coverage | Post-default compensation | Pre-default prevention |
| Explainability | Limited | Full transparency of criteria |
| Added value | Financial security | Decision optimization |
When to use one or the other?
Credit insurance
Relevant for large outstanding amounts or high-risk markets.
Credit scoring software
Essential for managing a large volume of customers, securing onboarding, and anticipating defaults.
Winning combination
Use RocketFin to anticipate risk + credit insurance to cover critical outstandings.
Frequently asked questions
Conclusion
Credit insurance and scoring software are not opposing forces: they complement each other. With RocketFin, you anticipate risks, reduce your unpaid invoices and secure your sales, even before resorting to external coverage.