ACH Debit

What it means

Daily ACH debits are the single most common cash-flow complaint from funded merchants, because the money leaves before the business has covered payroll, rent or inventory. Moving from daily to weekly ACH is often a bigger practical improvement than a lower rate.

Why it matters when you apply

Underwriting for revenue-based business funding leans on bank activity, time in business, industry and existing positions. Where this term touches one of those, it can move a decision.

See the four factors that decide most files on the qualification page.

Related terms

Factor Rate — A multiplier — not an interest rate — used to price a merchant cash advance. A $50,000 advance at a 1.4 factor rate means you repay $70,000 in total.

Holdback — The fixed percentage of daily or weekly card and bank deposits that a funder withholds to repay an advance, commonly 10% to 20%.

Stacking — Taking a second, third or fourth advance while an earlier one is still outstanding, leaving multiple funders collecting from the same deposits at once.

Where this fits

Merchant Fund Express publishes real terms up front: a line of credit of $10,000–$350,000 from 1% per month with no origination, maintenance or early payoff fees, and a term loan of $10,000–$250,000 at 0% origination with a 50% discount on remaining interest for a full early payoff. See the products →

Common questions

What is ach debit?

An automatic withdrawal pulled directly from a business bank account, used by most funders to collect daily or weekly payments.

How does this affect my approval?

It depends on the factor it touches — industry, bank activity, time in business or existing positions. Those four decide most files.

Where can I see real rates and terms?

Every product page on this site publishes the amount range, term, rate and fee structure up front.