Quick answer: Supply chain finance is funding structured around a business’s relationship with its suppliers or buyers — typically used to extend payment terms to suppliers or accelerate payment from buyers, improving cash flow across an entire chain rather than for one business alone. For most South African SMEs, the funding need supply chain finance describes is more commonly met through trade finance, purchase order funding, or invoice discounting — which is what New Heights Finance arranges through its lender panel.
Funding structured around buyer-supplier payment terms across a supply chain
Who typically uses it
Larger buyers extending supplier payment terms, or suppliers wanting early payment
SME alternative
Purchase order funding or invoice discounting often solve the same underlying need
Who arranges it
New Heights Finance, as a broker, across a panel of lenders
What is supply chain finance?
Supply chain finance is typically a buyer-led arrangement: a larger buyer sets up financing so its suppliers can be paid early, while the buyer itself gets extended payment terms. It differs from simple invoice discounting, where a seller alone arranges financing against their own unpaid invoices, without a buyer’s involvement in setting up the programme.
How does supply chain finance differ from trade finance, PO funding and invoice discounting?
Supply chain finance
Trade finance
Purchase order funding
Invoice discounting
Built around
The buyer-supplier relationship as a whole
Importing and exporting goods
Fulfilling a specific, confirmed order
A business’s own unpaid invoices
Typically used by
Larger buyers and their supplier networks
Importers and exporters
Businesses that have won an order but need funds to fulfil it
Part of a larger buyer’s formal supply-chain financing programme? That’s typically arranged directly by the buyer with their own financing partner, rather than something an individual supplier sources independently
Who typically offers supply chain finance in South Africa?
Larger, structured supply-chain finance programmes are typically arranged by big buyers — retailers, manufacturers — with institutional financing partners, rather than sourced independently by an individual SME supplier. If you’re an SME looking to solve a cash-flow gap tied to orders or invoices, purchase order funding or invoice discounting are the more directly accessible routes — and where New Heights Finance can help.
FAQs
Is supply chain finance the same as invoice discounting?
Not quite. Invoice discounting is arranged by an individual business against its own invoices, while supply chain finance is typically a larger, buyer-led programme covering an entire supplier network.
Can a small supplier arrange its own supply chain finance?
Usually not independently — it’s typically the larger buyer who sets up the programme. An individual SME supplier looking for similar cash-flow benefits is usually better served by invoice discounting or purchase order funding.
Does New Heights Finance arrange supply chain finance?
New Heights Finance’s panel is focused on the funding types most South African SMEs can access directly — purchase order funding and invoice discounting. Get in touch to discuss which fits your situation.
What’s the difference between supply chain finance and trade finance?
Trade finance specifically supports importing and exporting goods. Supply chain finance is a broader term covering financing arrangements across a buyer’s supplier network, which may or may not involve international trade.
Quick answer: Accounts receivable financing — also called receivables finance — is funding raised against the value of a business’s unpaid customer invoices, giving access to cash before customers actually pay. In South Africa, this is most commonly arranged as invoice discounting. See our invoice discounting page for how New Heights Finance arranges this type of funding, with facilities starting from a R50,000 minimum and funds typically available within 24 hours of approval.
A percentage of the invoice value upfront; the balance, less fees, on customer payment
Who arranges it
New Heights Finance, as a broker, across a panel of lenders — see invoice discounting
What is accounts receivable financing?
A business’s “accounts receivable” is the money owed by customers for goods or services already delivered, usually on 30-to-90-day payment terms. Accounts receivable financing unlocks the value of those outstanding invoices early, rather than waiting the full payment term for customers to pay.
Is accounts receivable financing the same as invoice discounting?
Yes — in South Africa’s market, these terms describe essentially the same thing: funding advanced against unpaid invoices. “Accounts receivable financing” is more of an accounting and finance-textbook term, while “invoice discounting” is the term more commonly used by South African lenders and brokers, including New Heights Finance. See our invoice discounting page for how it works here, including facility minimums and typical turnaround.
How does accounts receivable financing work?
You issue an invoice to a customer on standard payment terms (typically 30 to 90 days).
A lender advances a percentage of that invoice’s value upfront.
Your customer pays the invoice as normal, on its due date.
The lender releases the remaining balance, less fees.
Accounts receivable financing vs other working capital options
Accounts receivable financing
Working capital loan
Purchase order funding
Based on
The value of issued, unpaid invoices
Turnover and trading history
A confirmed customer order, before invoicing
Best for
Businesses waiting on slow-paying customers
A general cash-flow gap
Fulfilling an order before you’re able to invoice
Security
Effectively secured against the invoice itself
Varies by lender
Effectively secured against the order
Who qualifies for accounts receivable financing?
Lenders typically look at the creditworthiness of your customers — since they’re the ones ultimately paying the invoice — alongside your own trading history and the overall quality of your debtor’s book.
FAQs
What’s the difference between accounts receivable financing and factoring?
They’re closely related — both advance funds against invoices. Financing or discounting is usually confidential (your customer doesn’t know it’s happening), while factoring often involves the funder managing collections directly. Confirm which structure a specific lender offers before signing.
Can I finance just one invoice, or does it have to be my whole debtor’s book?
This varies by lender. Some offer facilities against your full book of invoices, while others can fund selected invoices individually — speak to New Heights Finance to confirm the structures available on its current lender panel.
Is accounts receivable financing secured or unsecured?
It’s effectively secured against the invoices themselves, rather than requiring a separate asset as collateral.
Does New Heights Finance arrange accounts receivable financing?
Yes — New Heights Finance arranges this as invoice discounting through its lender panel, with facilities starting from a R50,000 minimum. See our invoice discounting page for detail and to get started.
Quick answer: A management buyout (MBO) is when a company’s existing management team buys the business from its current owner, and management buyout finance is the funding structure that makes this possible — typically a mix of the management team’s own capital, senior debt, and sometimes mezzanine finance or seller financing to bridge the gap. New Heights Finance, as a broker, can advise on how to structure the funding and connect management teams with lenders on its panel.
Funding for a company’s management team to buy the business from its current owner(s)
Typical structure
A mix of management’s own capital, senior debt, and sometimes mezzanine or seller financing
Who it’s for
Management teams, family businesses planning succession, owners looking to exit
Who arranges it
New Heights Finance, as a broker, across a panel of lenders
What is a management buyout?
A management buyout is when the people already running a company — its existing management team — buy the business from its current owner(s), rather than the owner selling to an outside party. It’s a common route for succession planning, private equity exits, and divestment of a division to the team already running it. A related structure, a management buy-in (MBI), is when an outside team buys in and takes over management — the funding principles are similar, but the buyer isn’t already inside the business.
How is a management buyout funded?
The management team contributes its own capital — usually a smaller share of the total purchase price, but a meaningful one lenders want to see.
Senior debt is raised against the business’s assets and cash flow.
A funding gap often remains between what senior debt will cover and the agreed purchase price.
That gap may be filled with mezzanine finance, seller financing (the seller agrees to deferred payment), or additional equity investors.
Why do management buyouts happen?
Succession planning — an owner nearing retirement wants continuity rather than selling to an outside party
Private equity exits — a PE-backed company’s management buys out the fund’s stake
Divestment — a larger group sells off a division to its own management team
What do lenders look for in a management buyout?
A credible, experienced management team with a genuine track record in the business
Strong, stable cash flow to service the new debt
A clear business plan for the period after the buyout
A realistic valuation of the business being acquired
Management buyout finance vs other business acquisition funding
Management buyout finance
Standard acquisition loan
Mezzanine finance
Buyer
The company’s own existing management team
Any buyer, internal or external
Used alongside either, to fill a gap
Typical structure
A blend of management equity, senior debt, and sometimes mezzanine
An MBO is the existing management team buying the business. An MBI (management buy-in) is an outside team buying in and taking over management. The funding principles are similar in both cases.
How much of their own money does management need to put in?
It varies by deal and by lender appetite, but management is typically expected to contribute meaningfully alongside debt funding. Exact proportions depend on the business and the specific lenders involved.
Can a management buyout be 100% funded by debt?
It’s uncommon. Lenders generally want to see the management team has meaningful capital at risk, alongside debt and any mezzanine or seller financing used to close the funding gap.
Does New Heights Finance arrange management buyout finance directly?
New Heights Finance, as a broker, can advise on structuring an MBO’s funding and connect management teams with lenders on its panel suited to acquisition finance.
Quick answer: A merchant cash advance (MCA) is funding repaid as a fixed percentage of a business’s future card or digital sales, rather than fixed monthly instalments — common among South African fintech lenders serving card-based retailers. For many SMEs, the underlying need an MCA meets — fast, flexible funding not tied to a rigid repayment date — is also met by an unsecured business loan or working capital facility, which is what New Heights Finance arranges through its lender panel.
Funding repaid as a percentage of ongoing card/digital sales, not fixed instalments
Best suited to
Businesses with high, consistent card or digital payment turnover (retail, hospitality, e-commerce)
Repayment
Deducted automatically as a share of sales — slows in quiet periods, speeds up in busy ones
NHF’s role
Advises on and arranges unsecured or working-capital funding as an alternative route to the same cash-flow need
What is a merchant cash advance?
A merchant cash advance is funding advanced against a business’s future card or digital payment turnover. Rather than a fixed loan repayment, the provider takes an agreed percentage of daily card sales (often via the same payment terminal or gateway the business already uses) until the advance, plus a fee, is repaid. It’s most common among South African fintech lenders serving retail, hospitality and e-commerce businesses with consistent card-based income.
How is a merchant cash advance different from a business loan?
The core difference is how repayment works. A business loan has a fixed instalment and a fixed term, regardless of how sales perform week to week. An MCA’s repayment moves with sales — you pay less in a slow week and more in a busy one — but the total amount owed doesn’t shrink just because trade is slow, so a prolonged downturn simply extends how long repayment takes.
Merchant cash advance vs unsecured business loan
Merchant cash advance
Unsecured business loan
Repayment
A percentage of daily card/digital sales
Fixed instalments over an agreed term
Based on
Card/payment turnover
Turnover and trading history broadly
Best for
High card-turnover retail/hospitality/e-commerce businesses
Most SMEs, regardless of payment mix
Cost structure
A factor rate, not an interest rate — can be harder to compare
A clear interest rate and term
Is a merchant cash advance right for your business?
If most of your revenue runs through a card machine or online payment gateway and you want repayment that flexes automatically with sales, an MCA-style product may suit. If your income isn’t primarily card-based, or you’d rather have a clear, fixed repayment schedule you can budget around, an unsecured business loan or working capital loan is usually the more straightforward option — and is what New Heights Finance arranges through its panel of lenders.
What does a merchant cash advance cost?
MCAs are typically priced as a factor rate rather than a standard interest rate — for example, repaying 1.2 to 1.4 times the amount advanced. Because this isn’t expressed as an APR, it can be harder to compare directly against a loan’s interest rate. Always work out the total amount you’ll repay, not just the headline factor, before comparing options.
Can I get a merchant cash advance with bad credit?
MCA providers often weigh card turnover more heavily than credit score, which can make this type of funding accessible to some businesses a bank would decline. That doesn’t mean approval is guaranteed — criteria vary by provider, and a weak or inconsistent card-sales history can still count against an application.
FAQs
Is a merchant cash advance a loan?
Not technically — it’s usually structured as a sale of future receivables at a discount, rather than a loan, which means it isn’t regulated in the same way lending is. Read any agreement carefully before signing.
Does New Heights Finance offer merchant cash advances directly?
New Heights Finance, as a broker, focuses on arranging unsecured and working-capital funding through its lender panel. See unsecured business loans and working capital loans for the options NHF can help arrange.
What’s cheaper, an MCA or a business loan?
It depends on the factor rate versus the interest rate, and how quickly each is repaid — always compare the total repayment amount, not just the headline number.
Can a startup get a merchant cash advance?
Usually not — MCA providers typically need an established card or digital payment sales history to base the advance on, which a brand-new business won’t yet have.
What happens if my sales drop after taking an MCA?
Repayment is usually tied to a percentage of sales, so it slows down automatically. The total amount owed doesn’t reduce, though, so a prolonged downturn extends how long repayment takes rather than reducing what’s owed.
Quick answer: A business line of credit is a flexible funding limit you draw against, repay, and draw again as needed. It’s often positioned as an unsecured, faster-to-access alternative to a term loan, though terms and eligibility depend on the lender. Speak to New Heights Finance to confirm which facility types are currently available through our lender panel for your business.
New Heights Finance sends your application to our network of approved private lenders
What is a business line of credit?
A business line of credit is a pre-approved amount of funding a business can access when needed, repay, and draw on again — rather than receiving one lump sum. It’s the same underlying structure as a revolving credit facility; “business line of credit” is simply the term more commonly used by fintech and alternative lenders, while South Africa’s major banks tend to call the same mechanic a “revolving credit facility” or “revolving facility.”
Business line of credit vs business loan
This is the comparison most people researching this term are actually trying to make.
Business line of credit
Business loan
Payout
Draw as needed, up to your limit
One lump sum
Interest
Usually only on what you draw
On the full amount from day one
Reapplication
Not needed within your limit
Required for each new loan
Best for
Recurring or unpredictable funding needs
A specific, known amount for a defined purpose
Security
Often positioned as unsecured; varies by lender
May be unsecured or secured, depending on the lender
Neither is inherently cheaper or better — a line of credit suits ongoing or unpredictable needs, while a business loan suits a single, known funding requirement.
Is a business line of credit unsecured?
Many lenders market a business line of credit as an unsecured product, assessed on turnover and trading history rather than requiring an asset as collateral. This isn’t universal, though — the exact position depends on the lender and how large a limit you’re seeking. Speak to New Heights Finance to confirm the typical security position for lenders currently on our panel.
Can I get a business line of credit with no credit check, bad credit, or as a startup?
No legitimate lender extends business credit with genuinely no credit check — this phrase appears often in search data, but any lender assessing a real application will look at some combination of your credit record, trading history, and turnover. A weaker credit record can make approval harder but doesn’t rule it out everywhere, since some lenders weigh turnover and cash flow more heavily than a credit score. A business line of credit for a brand-new startup with no trading history is uncommon, since lenders typically need some track record to size a revolving limit responsibly.
What does a business line of credit cost?
Cost depends on the lender, the size of the limit, and your business’s risk profile. Because interest is usually only charged on what you draw, the total cost also depends heavily on how much of your limit you actually use.
FAQs
What’s the difference between a business line of credit and a revolving credit facility?
They describe the same underlying mechanic — a limit you draw against, repay, and redraw. “Business line of credit” is the term more commonly used by fintech and alternative lenders; “revolving credit facility” is the term South Africa’s major banks typically use. See our revolving credit facility page for the bank-side view.
Is a business line of credit better than a business loan?
It depends on your need. A line of credit suits recurring or unpredictable funding requirements where you don’t want to reapply each time. A business loan suits a specific, known amount for a defined purpose. Neither is universally cheaper or better.
Can I get an unsecured business line of credit?
Many lenders position a business line of credit as unsecured, based on turnover and trading history rather than an asset. This varies by lender and by the size of the facility you’re seeking.
Is there really a business line of credit with no credit check?
No — any lender assessing a genuine application will look at some combination of credit history, turnover, and trading history. Be cautious of any offer that claims otherwise.
Does New Heights Finance arrange a business line of credit?
New Heights Finance, as a broker, can advise on where a line of credit fits alongside other business funding options and matches applications to lenders on its panel.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
