ACH Withholding
The automatic daily or weekly bank withdrawal used to collect a fixed-amount business loan or advance payment directly from a business checking account.
Rather than the business manually sending a payment, the lender or funder is authorized to initiate an ACH debit on a set schedule, pulling the agreed amount directly from the bank account tied to the loan or advance.
This collection method is common across ACH business loans and some MCA structures, and it removes the risk of a missed manual payment, though it also means the business needs to keep sufficient balance available on each withdrawal date to avoid a bounced payment.
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