Invoice financing combines cash-flow control and risk control into one simple package. Credit insurance, meanwhile, is limited only to payment protection in the event of buyer default or bankruptcy.
With credit insurance, if the buyer defaults the supplier may wait months to receive funds and the claim process is often paperwork-intensive. With Stenn’s non-recourse factoring, there is no risk and no time-consuming claim to make in the event of a buyer defaulting. The Stenn platform provides non-payment protection for the supplier and takes the risk.
Finally, Stenn allows suppliers to finance only a single invoice if they wish to. Credit insurance will often require them to cover an entire ledger.