How the daily debit works
The funder is authorized to pull a fixed amount from your account each business day, typically Monday through Friday, until the total payback is met.
ACH stands for Automated Clearing House, the network behind direct deposits and bill payments. In daily repayment, you sign an authorization and the funder debits your account every business day. Weekends and bank holidays are skipped.
Divide the total payback by the number of business days in the term and you have the payment. Example (illustrative): $60,000 repaid over 120 business days is $500 a day. Roughly 21 to 22 business days make up a month, so that is about $10,500 to $11,000 per month in monthly-equivalent terms.
Why converting to a monthly figure matters
A $500 daily payment feels small but equals more than $10,000 a month. Always translate it before deciding whether you can carry it.
Owners compare a daily number to a monthly rent or loan payment and misjudge the load. Multiply the daily payment by the business days in a month, then compare it with your monthly profit before debt. Our daily payment calculator does this quickly.
| Daily payment | About per month (21.5 days) |
|---|---|
| $200 | $4,300 |
| $350 | $7,525 |
| $500 | $10,750 |
| $800 | $17,200 |
Businesses that handle daily payments well
Retail, restaurants, salons, convenience and service businesses with sales deposited daily usually match the schedule.
If customers pay you every day, a daily debit tracks your actual cash. A coffee shop taking in $2,000 a day by card barely notices a $250 debit. The debit is paid from money that just arrived, so there is less need to hold a large buffer.
It also keeps the balance from growing a long tail of obligations. Money you repay quickly is money you stop paying for sooner when the cost is built on a fixed payback.
Businesses that struggle with them
Contractors, seasonal firms and companies that invoice on net-30 terms can run short, because income lands in lumps while debits happen every day.
A contractor paid in two or three large draws per month may have strong revenue but thin balances between payments. A daily debit during a quiet week can trigger overdrafts. If that describes your business, ask about weekly or monthly payment alternatives, or consider a term loan with fixed monthly payments. Our guide to weekly ACH payments covers the middle option.
Planning cash flow around daily debits
Keep a buffer equal to several days of payments, watch the account balance daily, and tell the funder early if sales dip.
- Hold a buffer. A balance covering at least a week of debits avoids returned payments.
- Watch the pattern. If Mondays are slow and Fridays heavy, check that Monday balances can absorb the pull.
- Avoid stacking. Several daily debits from different funders can drain the account quickly.
- Talk early. If revenue falls, contact the funder before a payment bounces. Fees for returned payments add up.
Our cash flow management guide has a simple weekly routine for this.
A sample week of daily debits
Walking through five days of deposits and debits shows exactly where the cash tightens.
Illustrative case: a bakery takes in $1,200 on Monday, $1,500 Tuesday, $1,600 Wednesday, $1,900 Thursday and $2,800 Friday. A $300 daily debit leaves $900, $1,200, $1,300, $1,600 and $2,500 of net cash each day before other expenses. The weekend adds Saturday and Sunday deposits that are not debited at all.
The debit looks easy until you add rent, payroll and supplier bills that cluster on certain days. If payroll of $4,000 hits on Friday, the cash left from the week may be too thin. Plot your own week by day, including bill dates, to see the lowest balance point.
If the lowest point dips below zero, either request a lower payment, ask for a different frequency, or reduce the amount you borrow. A small change at the offer stage costs nothing, while an overdraft spiral later costs a lot.
One more check: look at your slowest month in the last year, not your average. If the daily debit would have taken more than a third of that month's deposits, the schedule is too aggressive for your business, and a smaller amount or a different structure is the safer choice.
Questions to ask before you agree
Confirm the payment amount, the number of payments, what happens on a missed debit, and whether repaying early reduces cost.
Ask for the payment schedule in writing, the total payback, any fees for failed debits, and whether the payment can be adjusted if sales fall. With revenue-based financing, the payment can float with sales, which softens slow periods. Compare with fixed daily structures before choosing.
ROI Funder shows the true cost, payback period and monthly-equivalent payment before you sign. Applications are online, take a few minutes and use a soft credit pull. Begin on the application page.
Frequently asked questions
Are daily ACH payments taken on weekends?
Typically no. ACH debits run on business days, so weekends and bank holidays are skipped.
What if a daily payment bounces?
You may owe a returned-payment fee and the funder may contact you. Call them early if you expect a shortfall.
Can I switch to weekly payments?
Sometimes, but it depends on the funder and the agreement. Ask about it before you sign.
Is daily repayment more expensive than monthly?
Not automatically. Cost depends on the total payback and term, not the debit frequency, though frequent debits give you less flexibility.