Daily & Weekly ACH Debits in an MCA: Cash-Flow Risk
Fixed daily ACH debits are how an MCA gets repaid fast — and how a slow week turns into a default.
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team
General information, not legal advice.
Overview
Most MCAs are repaid by a fixed amount debited from your business bank account every business day (or weekly) by ACH. This automatic, frequent collection is central to the product — and to its risk.
A fixed debit that does not flex with your actual sales can drain the account that pays your rent, payroll, and suppliers.
Topics to check
A genuine MCA collects a percentage of actual daily sales, so payments fall when revenue falls. Many agreements instead take a fixed daily amount that only loosely tracks sales, with reconciliation available afterward (if at all). A fixed debit during a slow stretch can overdraw the account and cascade into other failures.
Confirm whether the debit is a true percentage of sales or a fixed amount, and how it is adjusted if sales drop.
Agreements typically make any failed, blocked, or reversed ACH an event of default, and treat changing, closing, or restricting access to the designated bank account as a default too. That means a normal banking change, or a single bounced debit, can trigger acceleration of the entire balance and the funder’s remedies.
NSF and rejected-ACH fees stack on top, raising the real cost with every miss.
Before signing, model the daily debit against your worst recent weeks, not your best. Ask for true sales-based payments or meaningful reconciliation, a cure period for a failed debit before default, and the ability to change banks with notice.
If the daily payment only works when business is great, the structure is fragile.
Key takeaways
- Most MCAs debit a fixed daily or weekly amount by ACH, regardless of sales.
- A genuine MCA flexes with actual sales; a fixed debit shifts all timing risk to you.
- A single failed debit or a bank-account change is often an event of default.
- NSF/rejected-ACH fees compound the cost with each miss.
- Model the debit against your worst weeks and seek a cure period and reconciliation.
Official resources
Legal-review notes
Guide confidence marker: Medium confidence.
- Default and cure mechanics depend on the exact agreement and governing law.
- Whether fixed debits support recharacterization as a loan is fact-specific; consult counsel.
Frequently asked questions
Can an MCA debit my account every day?
Yes — daily (business-day) ACH debits are the standard MCA repayment method, with weekly debits as a common alternative. The amount is often fixed rather than a true percentage of your sales, which concentrates the cash-flow risk on you.
What happens if a daily debit fails?
Most agreements treat any failed, blocked, or reversed ACH as an event of default, often with an NSF/rejected-ACH fee, and may accelerate the full balance. Changing or closing the designated account is usually a default as well.
Can I switch banks during an MCA?
Usually not without the funder’s involvement — restricting or changing the designated account is typically an event of default. Seek the right to change banks with notice before signing.