Advances repay through a fixed daily/weekly debit or a percentage of sales (the holdback). Enter your total payback and term to get the daily payment, or use the holdback estimator to see what a sales-based debit looks like.
Key takeaways
- Fixed daily = total payback ÷ business days in term.
- Holdback = a set % of each day's sales (flexes with volume).
- The daily debit — not total cost — is what cash flow feels.
- Relief lowers the daily/weekly payment; it isn't a payoff.
- From $10,000, FICO 500+ considered.
Fixed debit vs holdback
A fixed daily debit is the total payback divided by the number of business days in the term. A holdback instead takes a set percentage of each day's sales, so it rises and falls with your volume. Confirm which structure your contract uses.
Why it matters for cash flow
The daily payment — not the total cost — is what your bank account feels. Two advances with the same cost can strain you very differently depending on the daily debit. If a slow week makes a fixed debit painful, ask about reconciliation or a relief structure that lowers the daily or weekly payment.
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Plan around it
Before you sign, check that the daily debit still leaves enough for payroll, rent, and inventory on a normal day — and on a slow one. Build in a cushion.
Frequently asked questions
Fixed daily or holdback — which is better?
Holdback flexes with sales, which helps in slow periods. A fixed debit is predictable but doesn't ease when sales dip. Know which you have.
My daily payment is too high — options?
Ask about reconciliation to align the debit to real sales, or a relief structure that lowers the daily/weekly payment. That's cash-flow relief, not paying the advance off.
How many business days in a term?
Roughly 21-22 per month, so a 6-month term is about 130 business days. Weekends usually aren't debited.
