ACH Business Loans

ACH Loans and Cash Flow Advances for Fast Access to Working Capital

ACH loans (also commonly referred to as ACH cash flow loans, ACH advances, ACH line of credit, or automated clearing house loans) are loans that can be used for a variety of business needs.

Small business owners typically use ACH loans to cover cash flow gaps and secure quick access to working capital. Eligibility is based primarily on monthly business revenue instead of credit scores.

Because credit standing isn't the main factor in determining funding eligibility, ACH loans are a great option for small business owners with subpar credit. If you've been denied traditional small business financing, such as an SBA loan, an ACH loan might be right for you.

At Clarify, we believe that all small business owners should be given access to financing, regardless of their situation. We work hard to find small business loan options that work for you, so you can achieve your business goals. When you finance through Clarify, we treat you like family.

Benefits of ACH Loans

Cash flow-based loans have a number of benefits, making them a good financing option for small business owners with wide-ranging needs. At Clarify, we streamline our loan process to make securing capital simple and easy.

Full Transparency

You won't find any hidden fees in our loan products. Other lenders include sneaky terms and prepayment penalties, which work against the borrower. At Clarify, we take pride in being the most transparent loan provider. Small business owners love working with us because we take an honest approach and always have the borrower's best interest in mind.

Quick Application Process

Our application process is speedy and straightforward. We understand that small business owners are busy dealing with complex business operations. We move quickly and do the hard work, so you can focus on running your business.

Flexible Repayment

Every business is unique, and small business owners have varying needs and preferences for repayment terms. ACH loans are one of the most flexible financing options. Small business owners can pay the borrowed funds back on a schedule that works for them. Choose to repay on a daily, weekly, biweekly, or monthly schedule.

All Credit Scores Can Be Eligible

Having less-than-stellar credit can be a huge hindrance when it comes to financing. Traditional financing relies heavily on credit standing to determine loan eligibility. If you've been denied a traditional loan because of your credit, ACH advances tend to be a great alternative option. You can get approved whether your credit is good or bad.

Minimal Paperwork Required

ACH loans require very little paperwork compared to alternative loan products from financial institutions. Unlike other lenders that require endless documentation, Clarify only requires the essentials. We strive to make the loan application process as easy as possible and limit the number of business days until you receive a direct deposit into your bank account.

No Collateral Needed

Cash flow loans are an unsecured type of financing, which means no collateral is needed to get approved. No collateral means less risk for business owners.

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How Do Businesses Use ACH Loans?

An infusion of extra working capital can be used for a variety of business purposes. How you choose to use your funding typically depends on your company's goals and objectives. We've listed a few common uses for ACH funding to give you an idea of just how beneficial these loans can be for your business.

1. Hiring and Training New Employees

Hiring and training new employees is an important part of growing a business. ACH loans can be used to help front the cost of onboarding and investing in new hires. Using the additional cash flow, small business owners can expand their businesses and secure top talent.

2. Bridging Cash Flow Gaps

Cash flow gaps are common when you're running a business. Whether you're dealing with an emergency, seasonal fluctuations, or a short-term dip in revenue, an ACH loan can provide the capital necessary to keep your business running.

3. Inventory Purchasing

Maintaining inventory is a necessary aspect of operating a business. ACH loans are a good option for business owners needing to restock supplies and place inventory orders. Whether you're planning to buy in bulk or place a small order for special items, Clarify has you covered.

4. Stalled Invoice Payments

Slow payments and delayed invoices can leave businesses struggling to pay expenses. For those operating with smaller margins, awaiting receivables can put a small business in danger of failing. An ACH loan can be used as a short-term buffer, providing a quick infusion of capital while businesses wait for invoices to be paid.

5. Marketing and Advertising

Marketing and advertising are essential elements of every business strategy. Building awareness and bringing customers in helps contribute to the bottom line of every business. ACH loans can provide the capital necessary to build out and implement a strong marketing and advertising strategy.

6. Disaster and Pandemic Relief

During these unprecedented times, small businesses have experienced financial hardships. Maybe you've experienced a decline in sales since the start of the coronavirus pandemic, or maybe you've been dealing with increased costs of PPE and sanitation supplies. If your company has been impacted by COVID-19, we're here to help.

Qualifying for a Cash Flow Advance

ACH loan eligibility works a little differently than alternative loan products, such as merchant cash advances (MCAs) or business credit cards. Our lenders look at specific criteria for loan approval, and average monthly revenue is the main qualifier.

Below are the factors we consider:

• Average monthly revenue
• Business bank account balance
• Average monthly deposits
• Time in business
• Credit rating

While credit score is listed as a factor, it's not weighed as heavily as other top qualifiers. If your credit score is in the lower range, don't be discouraged. Borrowers who don't have strong credit scores can still get approved.

FAQs about ACH Business Loans