What is an ACH Business Loan?
An ACH business loan is a term used to describe non-traditional business financing products that take a fixed payment usually weekly or daily Monday-Friday out of the business checking account for repayment. Bank loans also use the ACH payment process as well.
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AdvancePoint Capital makes the ACH loan application process a simple, straightforward experience.
What is an Automated Clearing House (ACH)?
ACH definition: ACH stands for “Automated Clearing House” which is an electronic funds-transfer system run by NACHA, formerly the National Automated Clearing House Association, since 1974. This payment system provides ACH transactions not only for business funding payments but also for use with payroll, direct deposit, tax refunds, consumer bills, tax payments, and many more payment services in the United States.
The ACH Network essentially acts as a financial hub and helps people, industries, and organizations move money from one business bank account to another. Recent rule changes are enabling most credit and debit transactions made through the ACH to clear on the same business day, which allows lenders to collect payments smoothly and efficiently. This process reduces risk.
Best ACH Cash Flow Loan Options for Small Businesses
Short-Term ACH Business Loans
Short-term loans are also considered ACH loans because the repayment terms of the loan withdraw payments directly from a bank account. Commonly used for working capital and cash flow.
Merchant Cash Advances
A merchant cash advance, which is a future receivables sales agreement, has a method of repayment which can be ACH payments daily out of the business's bank account. Credit card transactions or debit card transactions are not necessary for this repayment method. The most common use for this product is to improve cash flow.
ACH Loan Benefits
- Many owners use this funding product like a cash flow loan to help cash shortfalls
- ACH business loans provide additional capital in addition to a credit card. It also has less restrictive credit requirements as well
- Fast and simple payment process. The money funded same day to 24 hours
Qualifications for ACH Loans
- The business bank account must be healthy. What we mean by healthy is that your average daily balance in your account can accommodate a loan payment without causing an overdraft or negative balance in the bank account. If your average daily balance in your bank account dips below the lenders requirements you may be denied an ACH loan.
- All forms of personal credit history and business credit considered
- Must include a voided check so the lender can activate ACH loan payments and wire funds to a checking account.
Who Offers an ACH Loan?
- Marketplace lenders
- Online lenders
- Loan Brokers
- ACH Lender
We offer a diverse range of loans here at AdvancePoint Capital that you can take advantage of today as there are many ACH lenders. We provide information and credible loan options that you can rely on for your business. When traditional routes don’t work for your small business, we offer alternative solutions that can help you gain access to the cash you need to push your company forward. We additionally offer ACH loans for bad credit but your options may be limited and the rates, costs, and terms may be affected by how bad your credit is. If you’re a business owner looking for a simple way to get fast and simple capital, you’re in the right place. Over the years, we’ve empowered countless small business owners with financing solutions that work with their goals.
Whether you’re looking for an ACH advance, ACH cash loan or short-term business loan option, we’ll find a funding opportunity that aligns with your future needs. AdvancePoint Capital is committed to the growth and empowerment of small businesses seeking the right type of lender to help. If ACH loans aren’t what you’re looking for, we have other fast business loan options that you can use to benefit your company.
Give us a call or contact us today to learn more about our wide selection of ACH loan products that add the convenient and speedy automatic payment process to your loan.