ACH Advance and Cash Flow Loan Calculator
Last Updated on March 1, 2023
An ACH advance (also referred to as a cash flow loan or ACH loan) is a type of short-term small business financing. While ACH loans can be easy to qualify for, they often come with high interest rates and lower funding amounts. To help you better understand the costs associated with a cash flow loan, use our calculator below.
How to Use the ACH and Cash Flow Loan Calculator
The ACH advance / cash flow loan calculator helps small business owners be better prepared to take out an ACH advance or other type of cash flow loan. To use altLINE’s ACH loan calculator, input the following values and then click the “Calculate” button:
- Loan Amount: This is the amount you expect to receive from an ACH advance or cash flow loan provider.
- Factor Rate: Similar to an interest rate, this determines how much the cash flow loan will cost. The factor rate is typically between 1.2 and 1.5.
- Fixed Daily Payment: This is how much you expect to pay the ACH or cash flow loan provider on a daily basis until the loan amount + fees are repaid.
Once you click the “Calculate” button, you will receive the following outputs:
- Total Payback Amount: This is how much you can expect to repay the loan provider based on your loan amount and the factor rate. This payback amount excludes additional fees that the lender may subject you to, such as administrative fees or underwriting fees.
- Approximate Days to Repay: This is how long you can expect it to take to repay the total payback amount based on how much you borrowed, your expected factor rate, and your expected fixed daily payment.
Related: Merchant Cash Advance Calculator
Looking For a Financing Alternative?
If you’ve used our ACH loan calculator and are concerned about the cost of borrowing, give altLINE a call! With more than 80 years of experience serving customers, altLINE offers an alternative financing solution that does not require daily payments and can help you avoid a potential debt cycle. You can call one of our representatives at 205-607-0811 or fill out our quote form to learn more about how we can help you access the working capital you need.
Angela is the Director of Online Marketing at altLINE where she manages content production, marketing and sales operations, and digital PR. Angela joined altLINE in 2022 after several years of working in digital marketing across various industries including financial services and B2B. Angela loves creating content that helps readers better understand their financing options and helps them make informed decisions about factoring. Her work has been featured in publications like Search Engine Journal and Moz.