Daily Payment MCA
Daily payment MCA structures collect a fixed dollar amount or percentage from the merchant's bank account every business day via ACH — the most common modern MCA repayment frequency, providing predictable cash collection for funders and steady but ongoing burden for merchants.
Why This Matters
Daily payment is the dominant MCA repayment frequency. Funders prefer daily because it smooths cash flow risk — small daily debits are easier to absorb than weekly or monthly lumps when merchant revenue fluctuates. Merchants prefer daily because individual payments are small and less psychologically disruptive than weekly or monthly debits. The operational structure: a fixed dollar amount (e.g. $300/day) or revenue percentage debited each business day, totaling the agreed holdback. Most modern MCA agreements default to daily payment unless merchant specifically requests weekly.
Example
Merchant takes $30K advance at 1.32 factor ($39,600 payback). Daily payment of $300 × 132 business days = $39,600. Roughly 6.5 months calendar time. If business slows and the merchant requests a temporary reduction, funder may modify the daily amount with documentation and approval.
Frequently Asked Questions
Frequently Asked Questions
Why do MCA funders prefer daily payments?
Daily payments smooth collection risk and provide early warning of merchant distress. A merchant who can't make daily payments is in immediate trouble; a merchant whose monthly payment fails has had 30 days of unexposed risk. Daily payment also matches MCA's revenue-based product design more naturally than monthly.
Can MCA payments be weekly instead of daily?
Yes for some funders and deal types. Weekly payments suit merchants with weekly billing cycles (B2B contractors, professional services). Some funders default to weekly for non-retail merchants. The operational difference is collection frequency, not total cost — overall payback remains the same.