Glossary · operations

Daily debit

Also called daily ACH, daily pull, daily payment.

The ACH withdrawal a funder takes from a business operating account every banking day until an advance or short-term loan is satisfied.

Drafted with AI assistance and checked by a person. Its factual claims were verified against the sources listed at the end, by Find Me Funders research desk.

What it means

An ACH authorization signed at closing lets the funder originate a debit against the named operating account on every banking day. The amount is either a fixed dollar figure set at funding or a share of the prior day's card settlements, depending on how the product is structured.

Debits run Monday through Friday and skip bank holidays. A schedule quoted as "90 payments" therefore runs roughly eighteen weeks — a bit over four calendar months, not three. Weekly structures work the same way on one chosen weekday.

What the authorization actually permits

  • Debiting the account listed in the agreement, and in most forms any other account the business controls
  • Re-presenting a returned debit, sometimes more than once in a week
  • Adjusting the amount if the contract contains a reconciliation provision

Blocking the debit at your bank does not cancel the obligation. Nearly every agreement lists a stop-payment instruction, an account closure, or a change of depository bank without consent as an event of default, which accelerates the whole uncollected balance and reaches the guarantor.

Where this one catches people

Business owners evaluate the daily number and ignore the day count. The same $700 daily debit is a completely different obligation over 60 payments than over 250, and the contract states a total to be remitted rather than a term. Count the payments before signing; that figure, not the daily amount, determines what the money costs.

Worked through

A $60,000 advance with $84,000 to be remitted at $700 per banking day clears in 120 payments. That is twenty-four working weeks of collections, roughly five and a half calendar months.

Figures in the example are illustrative. They show the arithmetic, not a quote — what any one lender would charge is on that lender's page, where it is published at all.

Where you will meet this term

Merchant Cash Advance Working Capital Revenue-Based Financing

Read next

ACH authorizationThe document by which you authorise a funder to debit your bank account, and the legal basis for every daily … Daily remittanceThe amount an advance agreement calls for each business day toward the purchased receivables, set either as a… Event of default (EOD)Any condition a contract lists as putting the borrower in default, most of which have nothing to do with miss… HoldbackMoney withheld from what a business would otherwise receive and applied to an obligation — the daily slice of… NSF fee (NSF)A charge applied when a scheduled debit is returned unpaid, usually levied twice for the same event - once by… ReconciliationComparing what the funder actually collected against the percentage of receipts it was entitled to, and adjus…

Sources and checks

Every figure on this page traces to a document someone read, on a date. Where a check is past its review date it says so rather than passing as current.

  1. CORRECTED: 90 banking-day payments run about 18 weeks / just over four calendar months, not 'about four and a half' definition
    90 banking days / 5 per week = 18 weeks = 126 calendar days = 4.14 calendar months (126 / 30.44). Allowing for two or three federal holidays inside the span pushes elapsed time to about 4.3 months. Neither reading reaches four and a half. The entry was also internally inconsistent: its own example converts 120 payments to 24 working weeks and 5.5 calendar months, and the same method applied to 90 payments gives 4.14, not 4.5.
    Find Me Funders — Arithmetic recomputed and checked in review corrected Checked 10 Sep 2026 by Find Me Funders research desk
  2. the example's own figures check out: $84,000 at $700 a banking day is 120 payments, 24 working weeks, about five and a half calendar months, on a 1.40 factor example
    84,000 / 700 = 120 payments exactly. 84,000 / 60,000 = 1.40 factor. 120 / 5 = 24 weeks = 168 calendar days = 5.52 calendar months.
    Find Me Funders — Arithmetic recomputed and checked in review Verified against source Checked 10 Sep 2026 by Find Me Funders research desk

Daily debit — common questions

What does daily debit mean?

The ACH withdrawal a funder takes from a business operating account every banking day until an advance or short-term loan is satisfied.

Where does daily debit catch people out?

Business owners evaluate the daily number and ignore the day count. The same $700 daily debit is a completely different obligation over 60 payments than over 250, and the contract states a total to be remitted rather than a term. Count the payments before signing; that figure, not the daily amount, determines what the money costs.

Is daily debit the same as an interest rate?

Daily debit is defined above; if you are comparing it against a rate, check whether the two measures share a time dimension before you put them side by side.

Which products does daily debit apply to?

Merchant Cash Advance, Working Capital, Revenue-Based Financing.

Is there a worked example of daily debit?

Yes, on this page, and it is labelled illustrative. It shows the arithmetic, not a quote from any lender.

What else should I read alongside daily debit?

ACH authorization, Daily remittance, Event of default, Holdback, NSF fee.

Has this definition been checked?

Yes. Its claims were verified against the sources listed at the end of this page, and the reviewer is named.

Is this legal advice?

No. It is a definition. What a clause does in your contract, in your state, is a question for a lawyer licensed where you are.

Can I suggest a term?

Yes — [email protected]. The glossary grows from what people are actually shown in contracts.