Invoice finance vs supply chain finance for

2 min read

Fund yourselfInvoice finance

Buyer's programmeSupply chain finance

Whose creditThe difference

The supplier's two options

If you supply large buyers, you have two ways to get paid faster. Invoice finance funds you directly against your invoices, priced on your own and your customers' creditworthiness. Supply chain finance (SCF), where a big buyer runs a programme, lets you take early payment drawn on the buyer's stronger credit — often cheaper, but only available if that buyer offers it. See the fuller comparison.

Which to use when

	Invoice finance	Supply chain finance
Priced on	Your credit	The buyer's credit
Availability	You arrange it	Only if the buyer offers it
Covers	Your whole ledger	Invoices to that buyer
Cost	Depends on your standing	Often cheaper (buyer's rate)

If a major buyer runs an SCF programme, taking early payment through it is often the cheaper route for those invoices. For the rest of your ledger, or buyers with no programme, invoice finance funds you directly.

The Credicorp view

Where you cannot rely on a buyer's supply chain finance and would rather fund yourself directly and flexibly, a Credicorp business loan or Credicorp Flex line funds your cash cycle on your own terms — no dependence on a buyer, no personal guarantee. Register to apply. Educational content, not financial advice.

Frequently asked questions

Should a supplier use invoice finance or supply chain finance?

If a major buyer runs a supply chain finance programme, taking early payment through it is often cheaper for those invoices, because it draws on the buyer's stronger credit. For the rest of your ledger, or buyers with no programme, invoice finance funds you directly, priced on your own standing.

Why is supply chain finance sometimes cheaper?

Because early payment is drawn on the buyer's credit, which for a large, strong buyer is often better than a smaller supplier's. That lowers the cost of the early payment. The catch is that it is only available where the buyer chooses to run such a programme, so you cannot rely on it across your whole ledger.

What if my buyers don't offer supply chain finance?

Then you fund yourself. Invoice finance releases cash against your invoices regardless of whether buyers run a programme, and a short-term loan or revolving line funds your cash cycle directly. These keep you in control rather than dependent on a buyer's decision to offer early payment.