1. Definition of company solvency
Solvency refers to an entity's ability to repay all of its debts — current and long-term — using its total assets (fixed assets, receivables, cash). It differs from liquidity, which only concerns the ability to meet short-term obligations with current assets.
A company can be temporarily illiquid (short-term cash difficulties) while remaining solvent in the long term if its equity is strong. Conversely, a company can display positive cash flow but be structurally insolvent if its debts far exceed its real assets — a common situation after leveraged buyouts or excessive debt-funded acquisitions.
2. Why evaluate the solvency of a B2B client or supplier
For a leasing professional, credit provider or B2B financing specialist, assessing the solvency of a counterparty is not a formality: it is the only way to calibrate the real risk before committing a significant amount over 24 to 60 months.
- Reducing unanticipated defaults: structured solvency scoring identifies in advance companies whose financial ratios are deteriorating, before insolvency is published officially.
- Compliance and traceability: under the EU AI Act, any automated decision must be auditable. An explainable solvency score protects the lending institution in the event of a dispute.
- Portfolio optimisation: by continuously scoring the entire client portfolio, the risk team can focus manual analysis on genuinely ambiguous files.
- Faster decisions: automated scoring reduces file processing time from hours to seconds without degrading decision quality.
3. Reference solvency ratios
The standard financial solvency ratios draw on the balance sheet and income statement. Here are the four primary ones, their formulas and the thresholds generally used in French B2B credit:
Financial Autonomy Ratio
Measures the share of financing provided by shareholders. Below 20%, the company is highly dependent on external debt — a signal of structural fragility.
General Solvency Ratio
If this ratio is below 1, liabilities exceed assets: the company is technically insolvent. Above 1.5, the safety margin is considered satisfactory.
Repayment Capacity (Leverage)
Indicates in how many years the company could repay its financial debt with its operational cash generation. Beyond 3 to 4, refinancing risk becomes significant.
Net Leverage Ratio (Gearing)
When it exceeds 1, net financial debts exceed equity. Beyond 2, the financial structure is considered fragile by most credit institutions.
4. Public data sources to analyse solvency in France
Several registers and public databases provide financial and legal information on French companies at no or minimal cost:
Infogreffe
VisitBalance sheets and income statements filed with the commercial registry. Covers SA, SAS, SARL subject to mandatory filing. Delay: 1 to 18 months depending on closing date and filing date.
Not available for micro-enterprises and companies exempt from filing. Accounts can be kept confidential on request.
BODACC
VisitOfficial bulletin of civil and commercial notices: collective proceedings (safeguard, receivership, liquidation), business transfers, cancellations.
Reactive information — published only after proceedings are opened. Does not capture companies in silent distress.
INPI Data
VisitAccess to National Business Register (RNE) data: statutory changes, directors, pledges, deeds.
Structural and legal data; limited direct financial information.
INSEE API / SIRENE
VisitEstablishment status (active / closed), NAF code, headcount band, creation date. Free via API.
No financial data. Variable update delay (1 to 4 weeks after event).
Open Banking (PSD2)
With director or lessee consent, real-time access to bank flows: balances, regularity of receipts, fixed charges, disbursement behaviour.
Requires explicit consent. Does not cover unconnected accounts. Particularly relevant for young companies without available financial statements.
5. Limits of manual solvency analysis
The delay in accounting data
Accounts filed with the registry on 30 June 2026 may reflect a closing date of 31 December 2024 — an 18-month lag. In a context of rising rates and sector pressures, financial situations can deteriorate very quickly.
Absence of extra-financial data
Balance sheets do not capture management turnover, recent labour disputes, supplier payment delays, or client concentration (one client representing 60% of revenue). These weak signals are often the best predictors of default within 12 months.
Inability to continuously monitor a portfolio
Manually analysing a file takes 30 minutes to several hours. For a portfolio of 200 active clients, a semi-annual review represents hundreds of hours of work — impractical without a dedicated tool.
6. How to automate solvency analysis
Automating solvency analysis relies on a hybrid engine cross-referencing multiple data sources in a structured way. The 2026 reference methodology articulates four complementary layers:
Accounting layer
Extraction and normalisation of balance sheets and income statements (Infogreffe, OCR fiscal returns). Automatic calculation of solvency ratios and comparison with sector medians.
Banking layer
Open Banking aggregation (PSD2) or OCR reading of physical statements for companies without direct banking connection. Flow analysis, regularity of receipts and fixed overhead charges.
Legal layer
Real-time monitoring of BODACC (collective proceedings, transfers), INPI (statutory changes, pledges) and INSEE (active / closed status, headcount changes).
Extra-financial layer
Behavioural signals: company age, sector, payment history, management turnover, client concentration. Complements accounting ratios, particularly for young structures without available financial statements.
RocketFin's proprietary algorithm cross-references these four layers via a hybrid AI + proprietary algorithm engine to produce a solvency score 0-100 in under 30 seconds, on +100 data points aggregated per file. The score is explainable — each contributing factor is identified and justified — and compliant with the EU AI Act auditability requirements.
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