What Is Daily ACH? | Business Lending Glossary

Daily ACH means automatic daily repayments from your business bank account. Learn how it works and what to watch for.

Definition

Automated daily debits from a business bank account used to repay a loan or merchant cash advance.

Explanation

Daily ACH is the most common repayment mechanism for MCAs and short-term business loans. The lender initiates an Automated Clearing House (ACH) transfer each business day for a fixed dollar amount. Because repayments are frequent and automatic, lenders can offer funding with less stringent credit requirements — the daily pull reduces collection risk.

Example

A retailer receives a $50,000 MCA and repays it through $750 daily ACH debits over roughly 90 business days until the total payback amount is settled.

Why It Matters

Daily ACH repayments hit your bank account every business day, so maintaining sufficient cash balance is critical — returned ACH transactions typically trigger fees and can accelerate the loan to default.

Frequently asked questions

Can daily ACH payments be changed to weekly?

Some lenders offer weekly ACH as an alternative, and many will consider a payment modification if you experience a documented cash flow hardship — contact your lender before a payment fails rather than after.