The Best ACH Loans For Your Small Business In 2024

Total Rating	4.8
Rates & Fees5.0
Services5.0
Eligibility Requirements4.9
Application4.5
Sales & Advertising Transparency4.4
Customer Service4.9
User Reviews4.9

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 Time-Saving Option

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.

When To Use Lendio

You want to apply to multiple loans at once.

Get Started With Lendio

Fora Financial: Best ACH Loans For Bad Credit

Fora Financial

Get Started With Fora Financial

Total Rating	3.6
Rates & Fees3.2
Services3.5
Eligibility Requirements4.2
Application4.3
Sales & Advertising Transparency3.2
Customer Service2.8
User Reviews3.9

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 ACH Loans For Bad Credit

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 18 months.

Fora Financial Rates & Fees

Fora Financial’s factor rates range from 1.1 to 1.9. You should also expect an origination fee of at least 3%.

Fora Financial Eligibility Requirements

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

6+ months in business
$250,000 in annual revenue
570+ credit score

When To Use Fora Financial

You have bad credit and need a fast short-term loan.

National Funding: Best For Longer Repayment Terms

National Funding

Get Started With National Funding

Total Rating	3.7
Rates & Fees3.8
Services2.8
Eligibility Requirements4.3
Application4.8
Sales & Advertising Transparency3.8
Customer Service2.9
User Reviews3.7

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 Longer Repayment Terms

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 for equipment financing; 650+ for working capital loans

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

When To Use National Funding

You have good credit and need a long-term loan.

Rapid Finance: Best For High-Risk Businesses

Rapid Finance

Get Started With Rapid Finance

Total Rating	4.2
Rates & Fees3.6
Services4.3
Eligibility Requirements4.9
Application4.8
Sales & Advertising Transparency4.2
Customer Service2.9
User Reviews4.9

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 High-Risk Businesses

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 offers a wide variety of financing options for high-risk businesses 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.

When To Use Rapid Finance

Your business has good cash flow but you have bad credit.

Credibly: Best For Business Growth

Credibly

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Get Started With Credibly

Total Rating	3.6
Rates & Fees3.1
Services3.7
Eligibility Requirements3.3
Application4.0
Sales & Advertising Transparency3.6
Customer Service4.3
User Reviews4.0

Pros

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

Cons

Rates can be expensive

Why We Chose Credibly For Business Growth

Credibly is a well-established alternative lender that offers ACH loans in addition to other financial products for growing your business. 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 $600,000 with terms of up to 24 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

When To Use Credibly

You have poor credit and need fast, easy financing to grow your young business.

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

Weighted Rating Breakdown

Rates & Fees 20%

Services 20%

Eligibility Requirements 20%

Application 15%

Sales & Advertising Transparency 10%

Customer Service 10%

User Reviews 5%

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

Rates & Fees: 20% of the total star rating
Services: 20% of the total star rating
Eligibility Requirements: 20% of the total star rating
Application: 15% of the total star rating
Sales & Advertising Transparency: 10% of the total star rating
Customer Support: 5% of the total star rating
User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

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.

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 quicker 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.

The Bottom Line On ACH Business Loans

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.

Please be aware that 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.

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Chris Motola

Expert Contributor at Merchant Maverick

Chris has been writing about small business topics since 2003. He 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.

View Chris Motola's professional experience on LinkedIn.

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1. Lendio

❮ ❯

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

2. Fora Financial

❮ ❯

Short-term loans, merchant cash advances
FICO: 570+
Minimum revenue: $250,000/year

3. National Funding

❮ ❯

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

4. Rapid Finance

❮ ❯

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

5. Credibly

❮ ❯

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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