ACH Loan Calculator

How Your ACH Loan Payments are Calculated

ACH loans provide quick access to capital, and if you don’t have stellar credit, you may still be able to get the funding you need. Like other forms of financing, ACH loan payments are determined based on the loan amount, interest rate, term, and any other fees.

Real Quick, What Does ACH Stand For?

Glad you asked. ACH stands for Automated Clearing House, the method used for repayment withdrawals (more on that next).

ACH Loan Payment Schedule

ACH loan payments are typically withdrawn directly from your business bank account daily or weekly. The payment amount and intervals are set in advance with the lender (so there are no surprises). The access to your account and regular payment schedule lowers the risk for the lender, making it a more accessible form of funding for businesses with less robust credit.

ACH Loan Interest Rates and Terms

Because ACH loans provide cash lickity-split, they’re designed for faster repayment, too. It’s misleading to look at ACH loans with a traditional APR because they’re not designed to be repaid over a years-long process. Instead, it makes more sense to calculate based on a daily or weekly payment.

Instead of wading through paragraphs of financial jargon explaining ACH interest rates, scroll up and we’ll do the heavy lifting to calculate your payments.

ACH loan terms typically range from 1–14 months.

Consider Potential Fees

At Lendio, we don’t charge an application fee for access to our network of 75+ lenders, but many other lenders do. If you’re shopping around, inquire about potential application fees before you apply.

You will also want to consider any potential origination fees, charges many lenders include upfront to cover the cost of funding a loan. Keep origination fees in mind to account for the total cost of the loan.

How to Reduce Your ACH Loan Costs

Because ACH loan payments are similar to automatic credit card or bill payments, it makes paying on time a breeze. To avoid potential penalties, ensure that you maintain a balance that will cover your daily or monthly payments.

Curious about early repayment? Some lenders will give you a discount while others charge a penalty for early repayment (because it means they’re missing out on interest payments). Ask your lender about their early repayment policy.