Daily or weekly payments: which is better for my business?
Sterling's answer On price, it barely matters: weekly works out a few points cheaper because the money stays with you a little longer. Choose on cash flow, because a daily debit you can't see coming is harder to manage than one weekly payment you plan around.
Want a straight answer for your business?
See who'll fund meOn cost, daily and weekly payments are close: weekly is a few percentage points cheaper in APR terms because you keep the money a little longer. The real difference is cash flow. A daily debit takes a small bite every business day and can catch you out on a slow week. A weekly payment is bigger but predictable, and easier to plan around.
The worked number
Take $10,000 at a 1.35 factor, $13,500 to repay.
| Term and schedule | Payments | Each payment | APR |
|---|---|---|---|
| 6 months, daily | 126 | $107.14 | about 126% |
| 6 months, weekly | 26 | $519.23 | about 123% |
| 12 months, daily | 252 | $53.57 | about 63% |
| 12 months, weekly | 52 | $259.62 | about 62% |
The total is $13,500 in every row. The schedule moves the APR by a few points. The term moves it by half. If you're negotiating, push on term and factor first; payment frequency is the smaller lever.
Scale it up and the pattern holds: $50,000 at the same factor over 6 months is $535.71 a day or $2,596.15 a week.
How each feels in practice
Daily
- Small amounts, every business day
- Matches businesses with steady daily takings, like restaurants or retail
- Easy to lose track of, especially with more than one advance running
- A run of slow days can push the account toward overdraft
Weekly
- One larger payment on a known day
- Easier to plan payroll and suppliers around
- Suits businesses paid by invoice or with uneven daily sales
- A single bad week has to absorb the whole payment
Check the fine print for which days count. New York's disclosure rules require a provider with daily payments to explain "when daily payments will be required (e.g., on weekdays or every calendar day)".
The third option: a percentage of sales
Some advances don't use a fixed schedule at all. The funder takes a set share of each day's card sales, so slow days cost less and busy days repay faster. That can suit seasonal or uneven businesses better than either fixed schedule. If your contract uses a fixed debit as an estimate of that percentage, ask about the holdback and the reconciliation clause.
Sterling's take: pick the schedule your bank balance can survive in your worst week, not the one that looks cheapest on paper.
What to do next
- Look at your last three months of bank statements and find your weakest week.
- Check whether that week could cover five daily payments or one weekly payment, after payroll and rent.
- Run both schedules through the loan payment calculator at your actual amount and term.
- Ask the funder for the schedule you can manage before you sign, and get the payment days in writing.
Run your own numbers: Loan payment calculator
Monthly payment
$4,992.41
- Number of payments
- 24
- Total repaid
- $119,817.84
- Total interest
- $19,817.84
- Interest per $1 borrowed
- $0.20
- Same deal as a factor rate
- 1.198
Level payments on an amortising loan. Fees aren't included: add them with the offer checker.
Ready for a straight answer?
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Questions owners ask
Why are daily payments slightly more expensive?
Daily payments return money to the funder sooner, so on average you hold less of the advance for the same fixed cost. That nudges the APR up a little.
Do daily payments come out on weekends?
It depends on the contract. Some daily schedules run on business days only and others every calendar day, so check which yours says.
Can I switch from daily to weekly after signing?
Only if the funder agrees. Ask before you sign, because it is easier to negotiate then.
Which is better if my sales are uneven?
A true percentage holdback follows your sales, which can suit uneven takings better than any fixed schedule. Between fixed daily and fixed weekly, weekly gives you more room to plan.