Which funding products does this apply to?

Merchant Cash Advance, Working Capital, Term Loan, Revenue-Based Financing. Each has its own page listing the funders in this directory that offer it and what each one publishes about its terms.

Are the figures here quotes?

No. Every worked example is labelled illustrative and exists to show the arithmetic. What a particular lender charges is on that lender's page, where it publishes it at all.

The Find Me Funders research desk. Some drafting is AI-assisted, and every page that is says so at the top, including whether a person has checked its claims yet.

How do I know a figure here is right?

Where a page carries the green notice, its claims were checked against the sources listed at the end and a reviewer is named. Where it carries the amber one, nobody has verified it yet and you should confirm anything you plan to act on.

Are the examples real deals?

No. Every worked example is labelled illustrative and exists to show the arithmetic. What any particular lender charges is on that lender's page, where it publishes it.

Why do you never say what a typical rate is?

Because we cannot source it. A market average assembled from lenders who do not publish prices is a guess with a decimal point on it. Where a lender publishes a figure, we show that figure and say where it came from.

Is this financial or legal advice?

No. It is general information about how these products work. Outcomes depend on your contract and your state, and a lawyer or accountant licensed where you are is the person to ask about your situation.

Can I reuse this content?

Quote a paragraph with a link back. Do not republish whole articles.

Does Payment Frequency Change What Financing Costs?

Does paying daily instead of monthly change what the financing costs?

The dollars stay the same and the rate does not. More frequent collection returns the money sooner, which is worth something to the funder.

By Find Me Funders research desk Updated 14 September 2026 985 words 4 min read

Drafted with AI assistance. Not yet independently checked. Nobody has verified the claims on this page against a source, so treat the figures and legal points as a starting point rather than as settled, and confirm anything you are about to act on. How we check things.

Does payment frequency change the cost of business financing?

In dollars, no — a fixed total is a fixed total. In annualised rate terms, yes: more frequent payments return capital to the funder sooner, so the same dollars represent a higher rate. Illustrative only — $50,000 repaid as $65,000 over exactly 52 weeks annualises to 54.8% collected every weekday, 54.1% collected weekly and 51.4% collected monthly. The larger effect of frequency is on your cash management, not on the price.

In dollars: no

If the total is fixed at $65,000, it is $65,000 whether it arrives in 260 pieces or twelve. Frequency does not change a fixed total, and on a fixed-total product it does not change anything you write on a cheque.

In rate terms: yes, slightly

Illustrative only — $50,000 advanced, $65,000 repaid, over exactly 52 weeks. Counting every weekday and ignoring holidays so that all three schedules cover the same year:

260 weekday debits of $250. Periodic rate 0.21082%, annualised 54.8%, effective 72.9%.
52 weekly payments of $1,250. Periodic rate 1.0409%, annualised 54.1%, effective 71.3%.
12 monthly payments of $5,416.67. Periodic rate 4.28688%, annualised 51.4%, effective 65.5%.

The daily and weekly schedules move identical cash each week — five debits of $250 is $1,250. The rate still differs, because money that arrives on Monday is worth marginally more than money that arrives on Friday. Over a year of that, it is worth 0.7 of a percentage point.

Between monthly and daily the gap is 3.4 points. Real, and much smaller than most people expect.

Where frequency actually costs you

Per-payment charges.If each debit carries an administrative fee, 260 debits cost more than twenty times what twelve would, and depending on the size of that fee it can exceed the rate effect entirely — see what ACH and NSF fees cost.

Failure exposure.260 chances a year to be short in the account, each with a fee attached.

Cash management.A monthly payment can be timed after your own collections. A daily debit takes money before your customers have paid you. For a business with lumpy receivables, that timing mismatch is the whole problem, and it does not appear in any rate.

Buffer requirements.A daily schedule forces you to hold a balance you cannot deploy, which is a real cost that no calculation on the loan will show.

The per-debit fee, in dollars

Illustrative only —the same $50,000 advance repaid at $65,000. At $2.50 an ACH debit, 260 weekday debits cost $650 in fees against $30 for twelve monthly ones: a $620 difference, or 1.24% of the advance. At $5 a debit the gap is $1,240. At $10 it is $2,480, just under five points.

Set that against the rate effect computed above, which was 3.4 percentage points between monthly and daily. A $2.50 debit fee is smaller than the rate effect. A $10 debit fee is roughly half as large again. There is no general rule here, which is exactly the point: find the per-debit charge in your own contract and multiply it by the number of scheduled payments before deciding frequency is a detail.

Failed debits behave the same way. Three failures in a year, each drawing a bank return fee and a contract fee of around $35, is $210. Twelve is $840. A daily schedule does not only give you more chances to be short; it puts most of those chances on the mornings before your deposits land.

The calendar is not 52 weeks

Illustrative only —$65,000 collected at $250 a weekday needs 260 debits. A year holds about 260 weekdays before holidays and roughly 250 after the usual closures. At 250 banking days a year, 260 debits takes about 54 weeks rather than 52.

On a fixed-total product the extra fortnight costs nothing in dollars and lowers the annualised rate slightly, so the drift is in your favour. It matters for planning rather than for price: a business expecting the final payment at the end of March finds it lands in mid-April.

Where it does cost is on anything charged per period — a monthly servicing fee running two weeks longer, or a facility with a minimum duration attached.

When the total is not fixed, frequency moves the dollars too

Everything above assumes a fixed purchased amount. On an interest-bearing loan the answer changes, because interest accrues on a balance, and a balance that comes down sooner accrues less. Paying weekly on an amortising loan retires principal faster than paying monthly at the same annual outlay, and the saving is real rather than presentational.

So the first question about any frequency comparison is which kind of product is in front of you. Fixed total: frequency moves the rate and not the dollars. Interest-bearing balance: frequency moves both. Confusing the two is how a daily-pay term loan gets compared against a daily-pay advance as though the mechanics matched.

Converting offers to one number

Illustrative only —$1,250 a week is $1,250 x 52 / 12, or $5,416.67 a month. $250 a business day is commonly converted at 21 days for $5,250 — but a year holds about 260 weekdays, which is 21.67 a month, and at that figure it is $5,416.67 as well. Identical, as it should be, since both schedules move the same money.

The 21-day shortcut understates a daily schedule by roughly 3%. On a $250 debit that is $167 a month missing from your forecast. Use 21.67, or better still, take the total repayment, divide by the number of scheduled payments, and multiply by the payments per month. Where two offers have the same total and the same term, the monthly equivalents converge; where they do not, the difference is telling you the terms are not the same, which is the thing you wanted to find.

What to ask

If a weekly schedule is available at the same total, take it — cheaper to run, fewer failure points, easier to forecast. Ask whether frequency is negotiable at the same price, and whether the debit day can be set after your main deposit day.

And when you compare two offers with different frequencies, convert both to a monthly-equivalent outflow before you look at anything else: weekly x 52 / 12, daily x 21.67. The calculators will produce the annualised figures on each basis.