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.
Quick answer: A revolving credit facility is a pre-approved funding limit that a business can draw down, repay, and draw down again, without reapplying each time — similar in principle to a credit card but sized and priced for business use. It differs from a term loan, which pays out once as a lump sum. Availability and terms depend on the lenders on New Heights Finance’s panel at the time of application — speak to our team to confirm current options for your business.
A set limit you draw against, repay, and redraw — not a one-time lump sum
Interest
Typically charged only on the amount drawn, not the full limit
Term
Ongoing, reviewed periodically by the lender
Security
Depends on the lender and the size of the facility
Who arranges it
New Heights Finance, as a broker, can advise on where this fits among current lender-panel options
What is a revolving credit facility?
A revolving credit facility is a pre-approved funding limit a business can access repeatedly. Rather than receiving a single lump sum and repaying it on a fixed schedule (as with a term loan), the business draws funds as needed, repays them, and can draw again — up to the agreed limit — without a fresh application each time. Interest is usually charged only on the portion drawn down, not the full limit.
This structure is well established in South African personal banking — every major bank offers one — but the same mechanic, sized and priced differently, is also used for business funding.
How does a revolving credit facility work?
A lender assesses your business and sets an approved limit based on turnover, trading history, and (where relevant) security.
You draw down funds as needed, up to that limit.
You repay on the lender’s terms — interest accrues on what’s drawn, not the unused portion of the limit.
As you repay, that amount becomes available to draw again — the facility “revolves” rather than being used up once.
The lender reviews the facility periodically and may adjust the limit based on your business’s performance.
Revolving credit facility vs business overdraft vs term loan
Revolving credit facility
Business overdraft
Term loan
Structure
Set limit, draw and repay repeatedly
Attached to your bank account, negative balance up to a limit
Lump sum, fixed repayment schedule
Interest charged on
The amount drawn
The amount overdrawn
The full amount from day one
Best for
Recurring or unpredictable funding needs
A standing buffer on your operating account
A specific, one-off need
Reapplication
Not needed within the limit
Not needed within the limit
Required for each new loan
Revolving credit facility vs business line of credit
These terms describe closely related structures, and you’ll see both used in South Africa’s business lending market. A business line of credit is generally the same underlying mechanic — a limit you draw against repeatedly — but the term is more commonly used by newer, fintech-style lenders, while “revolving credit facility” is the term used by the major banks. If you’ve seen either term while researching funding, they’re worth comparing side by side rather than treated as entirely separate products.
Who qualifies for a revolving credit facility?
Lender criteria vary, but typically include:
An established trading history and demonstrable turnover
6 months bank statements showing consistent cash flow
In some cases, security, depending on the size of the facility
Speak to New Heights Finance to confirm the specific eligibility criteria for the lenders currently on our panel.
FAQs
Is a revolving credit facility the same as a business overdraft?
They’re similar in that both let you draw and repay repeatedly rather than taking a single lump sum, but a revolving credit facility is typically a standalone facility with its own limit, while an overdraft is attached to your existing bank account.
Is a revolving credit facility the same as a business line of credit?
They describe closely related, often overlapping structures. “Revolving credit facility” is more commonly used by traditional banks; “business line of credit” is more common among newer lenders. See our business line of credit page for the comparison.
Do I pay interest on the full limit or only what I use?
Typically only on the amount you’ve drawn down, not the unused portion of your limit — but this depends on the specific lender’s terms.
Is a revolving credit facility secured or unsecured?
It depends on the lender and the size of the facility. Smaller facilities may be unsecured; larger ones may require security.
Does New Heights Finance arrange revolving credit facilities?
New Heights Finance, as a broker, can advise on where a revolving credit facility fits alongside other business funding options and matches applications to lenders on its panel.
Quick answer: A quick business loan is funding arranged with a fast turnaround from application to payout — often within 24 to 72 hours once approved, though this depends on the lender and how complete your documentation is. New Heights Finance, as a broker, matches urgent applications to lenders on its panel best placed to move quickly, rather than routing every applicant through one slow process.
Often 24–72 hours from approval to payout, subject to the lender’s process
What speeds it up
Complete documentation, clear bank statement history, a straightforward funding need
Security
May be unsecured or secured, depending on the lender and how quickly funds are needed
Who arranges it
New Heights Finance, as a broker, across a panel of lenders — no lender can guarantee a timeline
What counts as a “quick” business loan?
There’s no fixed industry definition, but in South Africa’s private lending market, “quick” generally means funding that can be approved and paid out within days rather than the weeks a traditional bank process can take. It isn’t a distinct loan product on its own — a quick business loan is usually a short-term business loan or working capital loan arranged through a lender and process built for speed.
How fast can a business loan actually move?
Realistically, timelines depend on:
How complete your application is — missing documents are the single biggest cause of delay
The lender’s own process — some lenders on NHF’s panel are built for speed, others for larger, more complex facilities
Whether security is involved — an unsecured facility based on turnover can often move faster than one requiring a property valuation
How quickly you respond to requests for further information
New Heights Finance’s role, as a broker, is to match you to the lender on its panel best suited to your urgency — often within 24 to 72 hours of approval — rather than you approaching multiple lenders yourself and comparing timelines one by one. No lender can guarantee a specific turnaround before assessing your application.
What can speed up your application?
Have your recent bank statements ready before you apply
Be clear and specific about what the funding is for and how much you need
Respond quickly to any follow-up requests from the lender
Apply for an amount that matches what your turnover can realistically support — over-applying is a common cause of delay or decline
Is a quick business loan more expensive?
Not necessarily, but it depends on the lender and facility. As a broker, New Heights Finance’s role is to show you the real options so you can weigh speed against cost yourself.
Quick business loans vs other options
Quick business loan
Short-term business loan
Secured business loan
Priority
Speed
A specific, time-limited need
Larger amount, backed by an asset
Typical timeline
Often 24–72 hours once approved
Can vary; not always the fastest route
Often slower where a valuation is needed
Security
Usually unsecured, for speed
May be unsecured or secured
Secured against an asset
Can I get a quick business loan with bad credit or as a startup?
Urgency doesn’t remove the need for a lender to assess the application — a weaker credit record can still make approval harder and, in some cases, slower, since more information may be requested. No lender can guarantee approval, and any page or advertiser promising “guaranteed” or “instant” approval regardless of credit history should be treated with caution.
FAQs
Can I really get a business loan in 24 hours?
In some cases, yes — once a lender has approved your application, payout can happen quickly, sometimes within 24 to 72 hours. But the approval step itself takes as long as it takes; no lender can guarantee a same-day outcome before reviewing your application.
What’s the fastest type of business funding?
It varies by lender and your situation, but facilities that don’t require an asset valuation — such as some short-term or working-capital loans — often move faster than secured lending, which can involve a property or equipment valuation.
Does applying to multiple lenders speed things up?
Not necessarily, and it can create duplicate credit checks. New Heights Finance’s role as a broker is to match your one application to the lenders on its panel most likely to say yes quickly, rather than you applying everywhere yourself.
Is a quick business loan the same as a payday loan for businesses?
No. Quick business loans through NHF’s panel are business finance products assessed against your business’s trading history, turnover, and (where relevant) security — not short-term consumer payday lending.
Does New Heights Finance lend the money directly?
No. New Heights Finance is a broker and arranges funding by matching applications to lenders on its panel. We do not guarantee approval or turnaround time.
Quick answer: A secured business loan is funding backed by an asset — commercial property, equipment, vehicles, or other business assets — that the lender can rely on as security. Because the lender’s risk is lower, secured business loans can typically offer larger amounts, longer terms, and stronger rates than unsecured funding. New Heights Finance arranges secured business funding by matching your assets and needs to lenders on its panel.
Business assets — commercial property, equipment, vehicles, or other assets the lender accepts
Typical term
Generally longer than a short-term or unsecured facility
Why choose secured
Access to larger amounts and often better terms, in exchange for offering an asset as security
Who arranges it
New Heights Finance, as a broker, across a panel of lenders
What is a secured business loan?
A secured business loan is funding where the business (or its owner) pledges an asset — property, equipment, vehicles, stock, or another asset the lender accepts — as security for the loan. If the loan isn’t repaid, the lender has a legal claim over that asset. Because the lender’s risk is reduced, secured loans generally allow for larger amounts, longer repayment terms, and often more competitive rates than unsecured funding, where approval rests mainly on turnover and trading history.
This fits directly with how New Heights Finance is positioned: funding is arranged against your business’s assets or a confirmed pending payout, giving lenders the confidence to fund larger or longer-term needs.
How does a secured business loan work?
You identify the asset you’re willing to offer as security — commercial or residential property, equipment, vehicles, or other qualifying business assets.
New Heights Finance assesses your position — the asset, its estimated value, and your funding need — and matches you to lenders on its panel suited to that type of security.
The lender values the asset (a valuation may be required, particularly for property) and assesses the application.
If approved, funding is arranged against the asset, with terms set by the lender.
You repay over the agreed term. The asset remains at risk if repayments aren’t met — this is the trade-off for the larger amount and stronger terms a secured facility can offer.
Each asset type has its own process and lender panel — the pages above go into the specific detail for that security type.
Secured vs unsecured business loans
Secured business loan
Unsecured business loan
Security
An asset (property, equipment, vehicles)
May not require collateral; based more on turnover and trading history
Typical amount
Often larger, tied to asset value
Bounded by turnover and lender risk appetite
Typical term
Often longer
Often shorter
Speed to arrange
Can take longer where a valuation is required
Can often move faster with fewer steps
Neither is universally “better” — the right choice depends on whether you have a suitable asset, how much you need, and how quickly you need it. See our unsecured business loans page for the full comparison.
Who qualifies for a secured business loan?
Because the loan is backed by an asset, lenders on NHF’s panel generally look at:
The asset itself — type, condition, and estimated value
Your ability to service the repayments (turnover, trading history)
Clear ownership of the asset being offered as security
What does a secured business loan cost?
Rates and fees depend on the lender, the asset offered, the loan amount and term, and your risk profile. As a broker, New Heights Finance can lay out the options across its panel so you can compare total cost, not just the headline rate.
FAQs
Is a secured business loan cheaper than an unsecured one?
Often, because the lender’s risk is lower when an asset backs the loan, but this isn’t guaranteed — the actual rate depends on the lender, the asset, and your business’s profile. Compare offers rather than assuming.
What happens if I can’t repay a secured business loan?
The asset offered as security is at risk if repayments aren’t met, which can include the lender taking legal steps to recover the debt through that asset. This is a serious commitment and should be weighed carefully before pledging an asset.
Can I get a secured business loan with bad credit?
It’s often more achievable than an unsecured loan with a weaker credit record, because the asset reduces the lender’s risk, but it isn’t automatic. No approval is guaranteed.
What assets can I use for a secured business loan?
Commercial or residential property, business equipment, vehicles, and other qualifying assets are commonly accepted, depending on the lender.
Does New Heights Finance lend the money directly?
No. New Heights Finance is a broker and arranges secured business funding by matching applications to lenders on its panel.
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