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Daily remittance
Also called specified daily amount, daily payment obligation, daily delivery.
The amount an advance agreement calls for each business day toward the purchased receivables, set either as a fixed dollar figure or as a percentage of that day's receipts.
Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.
What it means
A merchant cash advance agreement names two numbers that matter: the total to be remitted and the rate at which it comes out. The second is the daily remittance. In a split or holdback structure it is a stated percentage of card receipts, so it moves with sales. In a fixed structure it is a set dollar amount that does not move unless a reconciliation is granted.
Collections continue until the full purchased amount has been delivered. There is no maturity date in the ordinary sense, which is deliberate: a fixed end date looks like a loan term, and the purchase framing depends on the obligation being tied to receipts rather than to a calendar.
The language in the document reflects that. You are not making payments; you are delivering the funder's share of receipts it already bought. That distinction does nothing for your bank balance but does a great deal of work if the deal is ever litigated.
Where this one catches people
The remittance is not interest, so nothing about it accrues and nothing about it stops. Slowing collections down through a reconciliation does not reduce what you owe, it only stretches the schedule. Speeding them up does not shrink the total either. Everything within the merchant's control changes timing, never price.
Worked through
An agreement purchasing $70,000 of future receipts for $50,000, with a specified daily amount of $583.33, collects for 120 banking days. A holdback version of the same deal taking 12% of daily card settlements finishes whenever those settlements have delivered $70,000.
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
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Daily remittance — common questions
What does daily remittance mean?
The amount an advance agreement calls for each business day toward the purchased receivables, set either as a fixed dollar figure or as a percentage of that day's receipts.
Where does daily remittance catch people out?
The remittance is not interest, so nothing about it accrues and nothing about it stops. Slowing collections down through a reconciliation does not reduce what you owe, it only stretches the schedule. Speeding them up does not shrink the total either. Everything within the merchant's control changes timing, never price.
Is daily remittance the same as an interest rate?
Daily remittance 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 remittance apply to?
Merchant Cash Advance, Revenue-Based Financing.
Is there a worked example of daily remittance?
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 remittance?
Daily debit, Factor rate, Fixed payment, Future receivables, Holdback.
Has this definition been checked?
Not yet. This entry is drafted and live, and the notice at the top says so. Confirm anything you are about to act on.
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.