Supply chain finance (SCF) and Credicorp Slice both address the same underlying problem: large supplier invoices create a cashflow gap. But they solve it in different ways and are suited to different business sizes.
How supply chain finance works
In a traditional supply chain finance arrangement (also called reverse factoring), a bank or finance provider sits between you and your supplier. When you approve an invoice, the provider pays your supplier immediately (at a slight discount), and you pay the provider later — on extended terms. The supplier gets cash quickly; you get extended payment terms. SCF is typically offered by large banks and requires both you (the buyer) and your supplier to participate in the programme.
How Credicorp Slice works
Slice is a bill-spreading facility for the buyer. You identify a specific supplier payment or bill you want to spread. Credicorp advances the full amount to the supplier on your behalf. You then repay Credicorp in equal monthly instalments over 3, 6, or 12 months, paying a flat fee for the facility. The supplier receives full payment immediately; you spread the cost over time.
Key differences
| Factor | Supply chain finance | Credicorp Slice |
|---|---|---|
| Who initiates | Usually buyer or supplier via a bank programme | Buyer via Credicorp directly |
| Supplier involvement | Supplier must enrol in the programme | No supplier enrolment needed |
| Typical user size | Large corporates and mid-market | SMEs and limited companies |
| Setup time | Weeks to months (supplier programme setup) | Hours to days (online application) |
| Cost borne by | Supplier (discount) or buyer (fees), varies | Buyer (flat fee) |
| Invoice size | Typically large (£100k+) | Smaller to mid-size business bills |
Which suits which business
Supply chain finance makes most sense for large buyers with significant supplier spend who can implement a multi-supplier programme. The setup effort is substantial but the economics at scale can be favourable for both sides.
Credicorp Slice is designed for UK SMEs and limited companies facing a specific large bill. There is no supplier enrolment — the supplier simply receives a bank transfer for the full amount and has no interaction with Credicorp. This makes Slice accessible and fast for companies that cannot run a full SCF programme.
See also: What is Credicorp Slice?, What bills can Credicorp Slice cover?, Credicorp Slice vs buy-now-pay-later for business bills.