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The Best ACH Loans For Your Small Business

ACH loans are a quick way to get capital for your business, but they can be a costly form of borrowing. Find out if this option is right for your business, and start your search with our picks for top ACH lenders.

    Chris Motola
  • UPDATED

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

ACH loans can help small businesses get the working capital they need quickly, and without the need to put up a specific asset for collateral. You’ll get a lump sum in your business bank account quickly, and payments will be automatically withdrawn from your account.

As subprime business loans, however, they come with a set of risks that prospective borrowers should keep in mind before they sign. Below, we’ll dive into ACH loans, what they are, how they work, and offer some of our favorite picks for ACH loans.

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
Lendio

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  • Term loans, short-term loans, lines of credit, & merchant case advances
  • FICO: No minimum
  • Minimum revenue: Varies by lender
  • Term loans, short-term loans, lines of credit, & merchant case advances
  • FICO: No minimum
  • Minimum revenue: Varies by lender

Apply Now

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Fora Financial

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  • Short-term loans, merchant cash advances
  • FICO: 500+
  • Minimum revenue: $15,000/month
  • Short-term loans, merchant cash advances
  • FICO: 500+
  • Minimum revenue: $15,000/month

Apply Now

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National Funding

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  • Short-term loans, equipment financing
  • FICO: 600+
  • Minimum revenue: $250,000/year
  • Short-term loans, equipment financing
  • FICO: 600+
  • Minimum revenue: $250,000/year

Apply Now

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Rapid Finance

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  • Short-term loans, term loans, lines of credit, invoice financing, SBA loans
  • FICO: No minimum
  • Revenue requirements: No minimum
  • Short-term loans, term loans, lines of credit, invoice financing, SBA loans
  • FICO: No minimum
  • Revenue requirements: No minimum

Apply Now

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Credibly

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  • Short-term loans, term loans, lines of credit, SBA loans, equipment financing, merchant cash advances, invoice factoring
  • FICO: 500+
  • Minimum revenue: $15,000/month
  • Short-term loans, term loans, lines of credit, SBA loans, equipment financing, merchant cash advances, invoice factoring
  • FICO: 500+
  • Minimum revenue: $15,000/month

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Read more below to learn why we chose these options.

What Are ACH Loans?

ACH loans are unsecured loans that are both disbursed and repaid through the automated clearing house bank-to-bank transfer system.

As a form of short-term loan, ACH loan qualifications tend to focus more on the flow of revenue into and out of your business checking account rather than your credit score. As is usually the case with short-term loans, ACH loans use flat fees rather than interest rates to determine the repayment amount. Payments are automatically withdrawn from your business check account at daily or weekly intervals.

Think you can qualify for a more competitive loan? Check out our picks for the best small business loans.

The 5 Best ACH Business Loans

ACH loans aren’t cheap, but the best ones will have competitive rates, easy application processes, and quick turnaround times. Here are the best ACH loans from lenders including Lendio, Fora Financial, and Rapid Finance.

Lendio: Best Time-Saving Option For ACH Loans

Lendio


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Pros

  • High borrowing amounts
  • No minimum credit score
  • Can return multiple loan offers

Cons

  • Rates can be expensive
  • Funds can take awhile to disburse
  • Application process can be slow

Why We Chose Lendio For Best ACH Loan

Lendio has two big things going for it. The first is that, as a marketplace, Lendio can present you with offers from multiple lenders within its network. You only need to submit a single application!

The other advantage to Lendio, particularly in the context of ACH loans, is that you may discover you qualify for a less risky loan with better terms than you had anticipated.

Lendio Services

Lendio helps you compare lenders using one simple 15-minute application. You can receive loan offers from 75+ lenders within 72 hours. This allows you to easily compare offers to ensure you get the best rates and terms. Lendio’s loan matching service is completely free to use.

Lendio Rates & Fees

Lendio’s rates and fees vary based on product type and the lender you select. Lendio has low-interest options like SBA loans, as well as more expensive funding like merchant cash advances for borrowers with bad credit or other challenges.

Lendio Eligibility Requirements

Lendio works with multiple lenders, and each lender has its own set of eligibility requirements for funding. However, Lendio recommends having a credit score of at least 550 to qualify. Additionally, the more revenue, higher credit score, and longer time in business you have, the better odds you have for qualifying for better rates and terms.

Get Started With Lendio

Read our in-depth review

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Fora Financial: Best For Bad Credit ACH Loans

Fora Financial


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Pros

  • Low credit score requirements
  • Discounts for early repayment
  • Fast & easy application process
  • Good customer service

Cons

  • Rates can be expensive
  • Some additional fees charged

Why We Chose Fora Financial For Best ACH Loan

Fora Financial specializes in funding businesses with poor credit, making it a good fallback option for businesses that have had trouble finding working capital elsewhere. While it’s not the cheapest way to borrow, Fora Financial does offer fair terms within its niche, such as early repayment discounts. You’ll also be able to borrow more money after you’ve paid off 60% of your original loan.

Fora Financial Services

Fora Financial offers short-term loans and merchant cash advances up to $1.5 million with terms of up to 15 months.

Fora Financial Rates & Fees

Fora Financial’s flat fees range from 10% to 30% of the amount you borrow. You should also expect an origination fee of 1% to 4%.

Fora Financial Eligibility Requirements

To qualify for funding from Fora Financial, you’ll need to meet the following requirements:

  • 6+ months in business
  • $15,000 in monthly gross sales
  • 500+ credit score

Get Started With Fora Financial

Read our in-depth review

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National Funding Best For Longer Repayment Terms

National Funding


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Pros

  • Low credit score requirements
  • Discounts for early repayment
  • Fast & easy application process
  • Funds are disbursed quickly

Cons

  • Rates can be expensive
  • Some additional fees charged
  • Website advertising can be misleading

Why We Chose National Funding For Best ACH Loan

National Funding offers ACH loans with no pre-payment penalty, which means you’ll get a discount if you pay it off early. Additionally, National Funding’s repayment term lengths are a little more lenient than you’ll typically see with ACH loans.

National Funding Services

National Funding offers short-term loans up to $500,000 with term lengths of up to 2 years.

National Funding also offers equipment financing.

National Funding Rates & Fees

National Funding’s flat fees range from 17% to 36% of the amount you borrow. You should also expect an origination fee of 1% to 3%.

National Funding Eligibility Requirements

To qualify for funding from National Funding, you’ll need to meet the following requirements:

  • 6+ months in business
  • $250,000 per year in revenue
  • 600+ credit score

You’ll also need an average bank balance of $1,500.

Get Started With National Funding

Read our in-depth review

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Rapid Finance: Best For High-Risk Businesses

Rapid Finance


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Pros

  • Financing is suited for high-risk businesses
  • Multiple types of financing available
  • Low credit score requirements
  • HIgh borrowing amounts

Cons

  • Rates can be expensive

Why We Chose Rapid Finance For Best ACH Loan

As ACH loan rates go, Rapid Finance’s are on the lower side. The lower costs also apply to origination fees, which top out at 2.5%. Rapid Finance also offers a wide variety of financing options in addition to ACH loans, so be sure to take advantage of those if they’re a better fit for your circumstances.

Rapid Finance Services

Rapid Finance offers short-term loans up to $1 million with term lengths of up to 60 months.

Rapid Finance also offers term loans, merchant cash advances, lines of credit, invoice factoring, and SBA loans.

Rapid Finance Rates & Fees

Rapid Finance’s factor rates range between x1.09 and x1.2. You should also expect an origination fee of 1% to 2.5%.

Rapid Finance Eligibility Requirements

Rapid Finance does not disclose specific borrower requirements.

Get Started With Rapid Finance

Read our in-depth review

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Credibly: Best For Business Growth

Credibly


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Pros

  • Low borrower requirements
  • Early repayment discounts
  • Fast & easy application process
  • Good customer service

Cons

  • Rates can be expensive

Why We Chose Credibly For Best ACH Loan

Credibly is a well-established alternative lender that offers ACH loans in addition to other financial products. While Credibly’s rates and terms are fairly typical of its niche, the easy qualifications and strong customer service make it a solid choice when it comes to short-term loans.

Credibly Services

Credibly offers short-term loans up to $400,000 with terms of up to 18 months.

Credibly also offers term loans, lines of credit, SBA loans, equipment financing, merchant cash advances, and invoice factoring.

Credibly Rates & Fees

Credibly’s factor rates start at x1.1. You should also expect an origination fee of around 2.5%.

Credibly Eligibility Requirements

To get a short-term loan through Credibly, you’ll need to meet the following borrower requirements:

  • 6+ months in business
  • $15,000 per month in revenue
  • 500+ credit score

Get Started With Credibly

Read our in-depth review

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Methodology: How We Chose Our Top Picks

Merchant Maverick reviews business financing products according to criteria that include interest rates, term lengths, fees, borrower requirements, and customer reviews. We compare lenders in similar categories to each other and then assign them a score based on our research.

For the best ACH loans, we narrowed our scope to short-term loans that are disbursed and repaid through direct bank-to-bank transfers. While these types of loans tend to be a more costly way to borrow, we took into account fair business practices within that niche.

How Do ACH Loans Work?

ACH loans are unsecured loans that get around the need for collateral by securing repayment through direct debits from your business checking account. These loans are typically offered through alternative online lenders rather than traditional lenders like banks.

While many aspects of an ACH loan are similar to standard bank loans, there are a few key differences:

  • ACH loans are approved and disbursed much more quickly than a traditional loan, often within a day or two.
  • ACH loans have shorter term lengths for repayment, usually measured in months rather than years.
  • ACH loans have a much more aggressive repayment schedule. Repayment debits are often made daily (some are weekly).

ACH loans also have flat fees rather than standard interest rates. These are expressed as either a percentage or a factor rate. For example, an ACH loan for $10,000 dollars with a flat fee of 20% (or x1.2 factor rate) would cost the borrower $12,000 ($10,000 + $2,000), not including any origination or administrative fees. Note that the best ACH lenders will generally offer you a discount for repaying early.

How To Choose The Best ACH Business Loan

Under perfect circumstances, you wouldn’t be looking for an ACH loan. They’re expensive and come with relatively punishing terms. However, if you’ve been struggling to find funding through other means, ACH loans can be an effective way to fund your business if you proceed with caution.

Here’s what to keep in mind.

Understand The Cost Of The Loan

Flat fees look a lot simpler than compound interest on paper, but they can hide the true cost of the loan. Short-term loans like ACH loans also don’t technically have APRs, which can make them tricky to compare to other loans, particularly traditional loans. You’ll also want to be aware of the fees the lender charges on top of the flat fee. The most common of these is an origination fee, which is an amount that’s generally deducted from the amount of money you receive.

Naturally, you want to avoid any unnecessary fees. We can help you calculate an effective APR for your short-term loan to find the best option for your business.

Be Prepared For Rapid Repayment

Your lender will debit your business checking account frequently until your loan is repaid, so you’ll want to ensure your account has the funds for each payment. The last thing you need while repaying a loan is overdraft fees.

Look For Discounts For Early Repayment

Remember those flat fees? What’s effectively going on there is that all of the interest from your loan is being front-loaded into a single, static fee. There’s an assumption built in that the loan will exist for the maximum term length you’re offered. The problem with that is that you’re effectively being charged extra if you pay the loan off early.

Reputable short-term lenders acknowledge this issue by offering early repayment discounts.

Understand Blanket Liens & Personal Guarantees

While unsecured loans don’t technically require collateral, you may still be asked to sign a UCC blanket lien. Signing one means your lender can potentially seize your business assets, including your accounts receivable and future inventory.

A personal guarantee, on the other hand, means that you as an individual are on the hook for repaying your business loan should you default, which can put your personal assets at risk.

Consider Alternatives To ACH Loans

ACH loans are just one of many business financing products available to small businesses. From lines of credit to invoice factoring, there are a variety of options when it comes to business loans for bad credit.

FAQs: ACH Business Loans

What does ACH mean on a loan?

An ACH loan refers to a type of short-term loan that is disbursed and repaid through bank-to-bank transfers through the Automated Clearing House (ACH). These loans are generally unsecured and cash-flow based.

Can I get a business loan without revenue?

Though not impossible, it can be difficult to get a business loan without revenue. A popular solution is to get a personal loan that can then be used for business expenses. Another solution is to raise money through crowdfunding.

What is an example of an ACH payment?

Examples of ACH payments include direct deposit of your salary into your bank account, bill payment services that directly debit your bank account, and certain subscription services.

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Chris Motola

Chris Motola

Senior Staff Writer at Merchant Maverick
Chris has been writing about small business topics since 2003. In 2015, he joined Merchant Maverick, where he writes about business financing, payment processing, and demographic trends in entrepreneurship. Chris has been featured in Fox Business, ABC News, Yahoo Finance, GoBankingRates, Newsweek, BizJournals, and other publications. He has a Bachelor’s of Arts in English Writing Arts from SUNY Oswego, and a Masters of Science in Interactive Media from the University of Central Florida. He currently resides in the Hudson Valley region of New York.
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