What is an ACH Loan & What are the Benefits?

Last Updated on May 31, 2017

One of the more innovative products available in the alternative lending marketplace is an ACH loan (sometimes called an ACH advance or cash flow loan).

ACH loans are a broad category of business loans that are specific in the way in which they are paid back. So let’s explore how to apply for an ACH loan, what repayment looks like and what the benefits are:

what an ACH loan is and the benefits

ACH Loan Benefits

The biggest benefit is that the application and approval process is typically very speedy, and typically takes a matter of days.

What’s more, unlike the case with bank loans, impaired credit is not a deal-breaker, 2+ years of credit history isn’t mandatory, and there’s no collateral requirement.

If the lender is confident that your business is viable and headed in the right direction, your application is likely to be approved.

ACH Repayment Terms

ACH stands for Automated Clearing House. Just as how a payment for a TV cable bill or utility bill is automatically withdrawn from a bank account, the repayment amount of your ACH loan is automatically withdrawn on a prescribed date – which can be daily, weekly or monthly (depending on the terms and conditions of the loan agreement).

What’s more, the amount is always fixed and predictable, which is important because it means that you will not experience any unexpected — and unwelcome — surprises when you manage your cash flow.

How to Apply for an ACH Loan

When you apply for an ACH loan, a prospective lender will review your business’s checking account statements (going back several months).

Why would they do this? Simply to get a sense of your average daily closing balance, which helps them determine how much of a loan to offer you, and for how long.

If you decide to move forward, your ACH loan agreement will include (among other details) the amount of the loan, the duration, the interest rate, the cost of borrowing, and the amount that you’ll pay back on a regular basis. That is where the “ACH part” of an ACH loan comes back into the picture.

Learn More About ACH Loans

At National Business Capital, we proudly offer ACH loans to clients across the country who use the funds to hire new staff, purchase new equipment, launch marketing campaigns, expand locations, and cover other key expenses and investments to keep their business strong and successful.

To learn more, contact our team today at (877) 482-3008  for a no-hassle, no-obligation consultation. We’ll empower you with transparent and objective information, so that you can make a business financing decision that is best for YOU.

Or, fill out our 60 second ACH application online to get your ACH loan in as little as 24 hours!

National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!


About the Author, Megan Capobianco

Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital & Services and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.