ACH Business Loans

Typical Range$5K-$500K

Repayment Term90-500 days

Factor Rate Range1.1-1.5x

Funding AvailableSame Day

ACH business loans are short-term financing products that repay through small, automated daily or weekly debits from your business bank account via the ACH network. Rather than one large monthly payment, repayment is distributed across 90-500 business days in amounts calibrated to your average daily bank balance. For businesses with consistent, predictable daily cash flow, this structure reduces payment stress by keeping individual payments small relative to daily revenue.

$5K-$500K Typical Range 90-500 days Repayment Term 1.1-1.5x Factor Rate Range Same Day Funding Available

An ACH business loan is a short-term financing product where repayment occurs through scheduled Automated Clearing House (ACH) debits from your business bank account — typically daily or weekly. Unlike a merchant cash advance (MCA) that takes a percentage of credit card sales, ACH loans debit a fixed daily amount from your bank account regardless of daily revenue variation. This makes them more predictable than MCAs but also means payment obligations don't automatically adjust downward on slow revenue days.

ACH loans are particularly popular among B2B businesses, service companies, and businesses with recurring contracts that have consistent bank deposits but don't have the credit card sales volume to benefit from a traditional MCA structure. They're faster to close than most term loans and require less documentation than bank financing.

The cost structure typically uses a factor rate (e.g., 1.25) rather than an APR. A $100,000 advance at 1.25 factor rate means you repay $125,000 total. Per CNBC's small business coverage, factor rate products are increasingly subject to state disclosure requirements. Crestmont offers transparent ACH financing with full cost disclosure before signing.

1. Step 1 — Application (10-15 Minutes): Complete a short online application with basic business information, requested amount, and monthly revenue estimate. No collateral documentation required.
2. Step 2 — Bank Statement Analysis: Submit 3-6 months of business bank statements. Lenders analyze average daily balance, deposit frequency, amounts, and NSF history to determine advance amount and daily payment.
3. Step 3 — Underwriting and Offer (Hours): Approval decisions often arrive within hours. The offer specifies advance amount, factor rate, daily payment amount, and term length in business days.
4. Step 4 — Contract and ACH Authorization: Sign the loan agreement and authorize ACH debits. Lenders verify the account is active and has sufficient average daily balance to support the payment schedule.
5. Step 5 — Funding (Same Day to 24 Hours): Funds deposit directly to your business bank account via ACH, typically same day or next business day after signing. Daily debits begin the following business day.

Factor Rate vs. APR: A 1.25 factor rate on $100,000 means $125,000 total repayment. Over 120 days this implies ~95% APR. Over 365 days it's ~25% APR. Factor rates are not APRs — always calculate total repayment cost AND implied APR for your specific term before accepting.

No Collateral Required

ACH loans are unsecured — no equipment, real estate, or inventory pledged. Repayment comes from daily business cash flow, making them accessible to businesses with strong revenue but limited tangible assets.

Fast Approval and Funding

Most ACH loan approvals happen within hours, with same-day or next-day funding after signing. For urgent capital needs — payroll gaps, inventory restock, opportunity capture — this speed is unmatched.

Small-Payment Structure

Spreading repayment across 90-500 daily debits keeps individual payments small. A $100,000 advance over 200 business days debits $625 per day — manageable for a business generating $5,000-$10,000 in daily revenue.

Accessible for All Credit Profiles

ACH lenders weight revenue and cash flow far more heavily than credit score. Business owners with personal scores in the 500s regularly access ACH financing that bank products wouldn't provide, based solely on demonstrated revenue consistency.

ACH Loan: How Daily Repayment Works

The Payroll Emergency

A staffing company with $300,000 monthly revenue faces a $75,000 payroll due Monday when a major client's $120,000 payment is delayed 3 weeks. An ACH advance of $80,000 funds in 4 hours. Daily payments of $550 for 200 days repay the advance from ongoing revenue while the delayed client payment accelerates payoff when it arrives.

The Inventory Opportunity

A retailer discovers a manufacturer liquidating popular product at 40% below wholesale — but must commit $65,000 within 48 hours. An ACH loan of $70,000 closes same-day. Retail margin on the discounted inventory yields $110,000, repaying the advance and generating $25,000 net profit over 90 days.

The Seasonal Staffing Build

A landscaping company needs $45,000 to onboard 12 seasonal workers for the spring rush. Revenue won't ramp for 3-4 weeks. An ACH advance funds hiring and ramp costs; growing spring revenue absorbs daily payments comfortably as the season accelerates.

1. Calculate total repayment before accepting: Multiply advance amount by factor rate to get total repayment. Divide by term days to get daily debit. Ensure your daily balance comfortably covers it with buffer to spare.
2. Maintain account buffer: Daily ACH debits fail if balance is insufficient, triggering NSF fees and potential default signals. Maintain at least 10-20 days of daily payment as buffer.
3. Avoid stacking multiple ACH loans: Multiple simultaneous daily debits quickly exceed cash flow capacity. Most lenders check for existing debits — excessive stacking leads to cash flow failure.
4. Use funds for high-velocity business needs: ACH loans are most cost-effective for opportunities that generate return quickly — inventory sold in 30-60 days, seasonal ramp costs, payroll for revenue-generating work in progress.
5. Ask about early payoff discounts: Some lenders offer prepayment discounts reducing total cost. Even 10-15% off the remaining balance can be significant on large advances.
6. Compare factor rates across lenders: A 0.10 factor rate difference on a $100,000 advance is $10,000. Always compare before accepting.

Crestmont Capital provides ACH business loan access with transparent factor rate disclosure, full cost breakdowns before signing, and advisors who ensure the daily payment obligation is supportable given your actual cash flow.

• Full transparency: We show total cost, daily payment, and implied APR — not just factor rate — before you decide.
• Cash flow analysis: Our advisors review your bank statement averages to confirm the daily debit is supportable without cash flow stress.
• Renewal pathway: Good repayment history opens larger amounts and better rates on renewal.

Compare: merchant cash advance for card-volume businesses, unsecured lines of credit for revolving needs, and payroll financing for payroll-specific capital.

Tell us what your business needs and review available structures with a financing specialist.

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