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 fact they are complementary. This comparison highlights their key differences.
Join the waitlistCredit insurance: coverage after default
Provides compensation in case of unpaid invoice.
Offers financial security, but after the fact.
Can be expensive and slow to activate.
Credit insurance principle
Credit insurance intervenes after a default has occurred, offering financial compensation but not preventing the risk upstream.
Predictive scoring principle
Scoring software analyzes data in real-time to anticipate risks and prevent defaults before they occur.
Scoring software: anticipate before default
Evaluates solvency in real-time.
Detects weak signals and reduces risks upstream.
More affordable cost, rapid deployment.
Detailed comparison
| Criteria | Credit insurance | RocketFin software |
|---|---|---|
| Cost | 2-3% of insured revenue + deductible | Fixed monthly subscription |
| Speed | Several weeks/months | Instant (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.
Scoring software
Essential for managing high customer volume, securing onboarding and anticipating defaults.
Winning combination
Use RocketFin to anticipate + credit insurance to cover critical outstanding amounts.
Frequently asked questions
Conclusion
Credit insurance and scoring software are not opposed: they complement each other. With RocketFin, you anticipate risks, reduce your defaults and secure your sales, even before needing external coverage.