Glossary · After funding
ACH remittance
ACH remittance is repaying an MCA through fixed daily or weekly debits from the merchant's bank account until the full RTR is delivered.
Also called daily ACH, fixed daily payment, weekly ACH, remit
The payment is the payback divided by the number of scheduled payments. Daily schedules usually count business days, often 21 a month, though some funders use 20 or 22. Weekly schedules use 52 weeks a year.
Returned debits show up with ACH return codes such as R01 (insufficient funds) or R02 (account closed). A run of returns is the first sign a deal is heading toward a modification or a default. Brokers track remittance reports from funders to know who is performing and who is approaching renewal.
Formula
payment = payback ÷ number of payments number of payments (daily) = term in months × business days per month number of payments (weekly) = term in months × 52 ÷ 12
Example
$67,500 over 126 business days (about six months at 21 a month) is $535.71 a day.
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Related
- FeatureRenewalsSee which funded merchants are eligible to renew now, in the next 30 days or later, from paid-in percentage and each lender's threshold, and start the renewal deal in one click.Read
- Free toolMCA factor rate calculatorFree merchant cash advance calculator. Enter the advance, factor rate, fee and term to get payback, daily or weekly payment, cost of capital and an APR estimate.Read
- Free toolHoldback calculatorWork out an MCA holdback percentage from the daily or weekly payment and monthly revenue, or the payment a target holdback allows. Free, no signup.Read
- GlossarySplit fundingSplit funding is an MCA repayment method where the card processor sends a fixed percentage of each card settlement to the funder before the merchant is paid.Read
- GlossaryPaid-in percentagePaid-in percentage is how much of an advance's payback a merchant has remitted so far. Funders use it to decide when a merchant can renew.Read
- GlossaryRTR (right to receive)RTR is the total amount of future receivables a funder buys in a merchant cash advance: the advance times the factor rate, also called the payback.Read
- GlossaryDefaultIn an MCA, a default is a breach of the contract, such as blocking the funder's debits, switching banks, diverting receipts or stacking against terms.Read
- GlossaryNSFNSF means non-sufficient funds: a payment bounced because the account was short. In MCA underwriting, NSF counts per month are a core risk signal.Read