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ACH Payments and ACH Business Loans for Your Small Business

Paper checks used for small business loan payments are becoming a history. The alternative lending market is increasingly turning to ACH payments. To get more information on ACH payments and ACH business loans, just read this article.

ACH Payments

ACH (Automated Clearing House) payments are also referred to as eChecks. These payments are being more and more often used for online and point-of-purchase payments. This is also true of B2B (business-to-business) and P2P (person-to-person) payments. The costs associated with ACH payment processing depends on your merchant account provider or the entity you use for ACH payment processing.

Automated Clearing House is a network that processes electronic credit/debit transactions in the US. The ACH network process almost all of the electronic payments. ACH payment processing requires no setup fees and offers an affordable payment process. Also, it eliminates banking fees and paper check handling costs. Funds are electronically transferred fast.

  • ACH payments save you $1.22 per check.
  • ACH payments are a good option for you if you don’t want to spend time on writing a check. This is especially true of scheduled and automatic ACH debits.
  • You can establish and maintain a strong business profile through regular and timely payments.
  • You can enjoy daily/weekly debits instead of monthly debits. As a result, the size of each periodic payment gets reduced, thus making it less difficult for you to smooth your cash flow and avoid large expenses at the end of the month.
  • This is an opportunity to get access to capital if you aren’t eligible for more traditional payment modes.

ACH Business Loans and ACH Debits

The innovation of completing payments electronically is called to make small business loan payments seamless and provide ease of processing both for borrowers and lenders. Are you interested in ACH loans for your business?

Well, you can get approved for ACH business loans without challenges by turning to First American Merchant. FAM is an award-winning business funding provider and reputable alternative online lender that boats an A+ rating with the BBB. offers a variety of payment options, and ACH check processing is one of them. Applying is a hassle free and quick, requiring just a few minutes. FAM’s ACH funding program, which is also known as “Bank Only” funding, enables merchants to get funded even if they lack a merchant account.

To qualify, you need to:

  • Have 500 FICO score
  • Be 6 months in business
  • Have 10k in gross monthly deposits
  • Have less than 3 NSF’s per month

ACH debit is currently used by the membership organizations and bill payments, B2B and medical, government and educational, utilities and insurance, daycare and health clubs, not-for-profit and wholesalers, suppliers markets, and others.

A daily/weekly ACH debit is good for lenders because it cuts loan payment processing costs and ensures fast payments. In fact, ACH direct debits are increasingly turning into a popular way for both traditional and online lenders to accept periodic payments.

If you’ve decided to apply for an ACH business loan, make sure to take into account several important things. First, be sure to have the right kind of cash flow for the periodic payment frequency. Besides, be sure to understand the amount that’s going to be pulled with every periodic payment. Finally, be sure to understand what’ll happen in case you lack the sufficient funds in your account.