Institutions Like American Express Are Mainstreaming Daily ACH Payments

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A takeover-style ad on CNN’s website rang very familiar earlier today. The ad, paid for by American Express, preached merchant financing with a fixed fee.

merchant financing

The ad brought me to a page that offered a fixed fee business loan between $5,000 and $2 million with daily ACH repayment and no interest rate. Terms were 6 months, 12 months, or 24 months.

merchant financing

While this is more similar to an OnDeck loan, than say perhaps, a merchant cash advance, the concept of fixed fee business financing is becoming a standard even among institutional finance providers.

Square, as I experienced firsthand, is another company mainstreaming the fixed fee model. The difference there is that the payments are monthly rather than daily.

The good news for many online lenders and MCA companies of course, is that merchants that may not qualify with some major financial companies, are at least being introduced to the concept of fixed-fee short-term capital and even daily payments.

Last modified: November 30, 2017
Sean Murray

Category: Business Lending

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