Revisiting Splits and Payment Methods in the Funding World

As most people are aware, ACH debits are only one method used in the small business finance industry to facilitate performance of a deal. Here are some other common ways:

Split Funding

This method has been in use since at least 1998 and is still used by many funding companies today.

See: CC Splits Still Make Profits, Payments Knowledgeable Funders Benefit

Lockbox

A lockbox gives you the protection and visibility of a split but may require additional setup steps. This method was very common in the 2008 – 2012 era and is still available.

Variable ACH

The variable ACH system, made famous by MCC starting circa 2009, is still in use around the industry.

See: Homegrown Software Enables FundKite to Reconcile MCAs Daily Rather Than Monthly