A revenue-based advance is repaid by handing back a fixed slice of your total obligation on a set rhythm — most often a small amount every business day (daily remittance) or a larger amount once a week (weekly remittance). The total dollar amount you repay is the same either way; what changes is how frequently money leaves your account and how each withdrawal feels against your cash flow. Daily remittance spreads repayment into many tiny, predictable debits, while weekly remittance consolidates the same total into one larger draft, giving your balance room to rebuild between payments.
Key takeaways
- Total repaid is set by the factor rate (amount × rate) and is the same whether you remit daily or weekly.
- A $50,000 advance at a 1.30 factor rate equals $65,000 repaid — a $15,000 cost.
- Daily remittance runs on business days only, roughly 21–22 payments per month.
- On a 6-month term, that $65,000 is about $516 per business day or about $2,500 per week.
- Daily suits steady daily receipts (restaurants, retail, e-commerce); weekly suits lumpy revenue (contractors, B2B, wholesale).
- Remittances can be fixed (same dollar amount) or percentage-based (a share of sales that flexes).
- Advances start from $10,000, with revenue-based approval often available at FICO 500+ based on sales and deposits.
- A restructure can lower the daily or weekly payment to ease cash flow — reducing the amount pulled each period, not paying off the balance.
- Match the schedule to your deposit rhythm and lowest-balance days, and keep drafts clear of payroll and rent dates.
What "remittance" actually means on an advance
With a revenue-based advance, you are not repaying a loan with monthly installments and an interest rate. Instead, you receive a lump sum today and agree to remit a fixed total back over time. That total is set by the factor rate — a multiplier applied to the amount advanced. The remittance is simply the recurring transfer that chips away at that total.
For example, a $50,000 advance at a 1.30 factor rate means you owe $65,000 in total ($50,000 × 1.30). The $15,000 difference is the cost of the advance. How you hand back that $65,000 — in daily bites or weekly chunks — is the remittance schedule.
- Fixed remittance: the same dollar amount every period, agreed up front.
- Percentage (split) remittance: a set percentage of daily card or deposit volume, so the dollar amount flexes with sales.
Both daily and weekly schedules can be structured as fixed or percentage-based, though fixed ACH is the most common in the market today.
Daily remittance: many small debits
Daily remittance withdraws a small, fixed amount every business day — typically Monday through Friday, excluding bank holidays. Because there are roughly 21–22 business days in a month, the per-payment figure is small, but the debits are frequent.
Using the $65,000 total above over a 6-month (about 126 business days) term:
| Schedule | Business periods | Per-payment amount | Withdrawn per week |
|---|---|---|---|
| Daily | ~126 payments | ~$516 | ~$2,580 |
Who it tends to fit: businesses with steady, high-volume daily receipts — restaurants, retail, e-commerce — where money comes in every day and a small daily pull is barely noticed. The frequent-but-tiny structure can also make larger advance amounts feel more manageable.
The trade-off: your account never gets a long runway to rebuild. If you have a slow stretch or several large bills clustered together, a daily debit keeps hitting regardless.
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Weekly remittance: one larger draft
Weekly remittance rolls the same total into a single draft once per week — usually on a fixed weekday. The dollar amount is larger, but it lands only once, leaving several days for deposits to accumulate before the next pull.
Same $65,000 total, same ~6-month term, expressed weekly:
| Schedule | Periods | Per-payment amount | Withdrawn per week |
|---|---|---|---|
| Weekly | ~26 payments | ~$2,500 | ~$2,500 |
Who it tends to fit: businesses with lumpy or project-based revenue — contractors, B2B services, wholesalers — that get paid in larger batches rather than in a constant daily trickle. One weekly draft is easier to plan around a known payment cycle.
The trade-off: the larger single amount requires more discipline. If the draft date lands right before your own big payables, the timing can pinch.
Side-by-side: how the two feel on the same advance
The headline point worth repeating: daily and weekly cost the same in total dollars when the factor rate and term match. The difference is entirely about timing and cash-flow texture, not price.
| Factor | Daily remittance | Weekly remittance |
|---|---|---|
| Total repaid ($50k @ 1.30) | $65,000 | $65,000 |
| Per-payment size | Small (~$516) | Larger (~$2,500) |
| Payment frequency | ~21/month | ~4/month |
| Cash-flow runway between pulls | Very short | Several days |
| Best for revenue that is… | Steady & daily | Lumpy or batched |
| Mental/bookkeeping load | Set-and-forget, but constant | Fewer, more visible drafts |
Neither is universally "better." The right choice is the one that matches how your deposits actually arrive.
Matching the schedule to your cash flow
Before you accept a schedule, look at a recent bank statement and ask how your money genuinely moves:
- Deposit rhythm: Do you get paid a little every day, or in bigger, less frequent batches? Match the remittance to the rhythm.
- Lowest-balance days: Identify the days each week your balance dips. A fixed weekly draft on your lowest day is a recipe for stress; a daily pull smooths that out.
- Fixed payables timing: Payroll, rent, and supplier drafts should not collide with a large weekly remittance.
- Percentage vs. fixed: If your sales swing widely, a percentage-based split remittance can breathe with revenue — pulling less on slow days.
If an existing advance schedule is straining your account, one common path is a restructure that lowers the daily or weekly payment by extending the term or combining balances into a single, smaller remittance. This reduces the amount leaving your account each period to ease cash flow — it is not a payoff or buyout of what you owe.
Frequently asked questions
Does daily remittance cost more than weekly?
No. When the factor rate and term are the same, the total dollars you repay are identical. Daily just breaks that total into more, smaller pieces, while weekly consolidates it into fewer, larger drafts. The difference is timing and cash-flow feel, not total cost.
Are payments withdrawn on weekends and holidays?
Typically no. Daily remittance usually runs on business days only — Monday through Friday, excluding bank holidays — so a "daily" schedule is really about 21–22 payments a month. Weekly remittance falls on one set weekday each week.
Can I switch from daily to weekly after funding?
Sometimes. Whether a schedule can be changed mid-term depends on the specific agreement and the funder's policy. Some businesses instead pursue a restructure that resets the schedule and lowers the per-payment amount to relieve cash-flow pressure.
What is the difference between fixed and percentage remittance?
A fixed remittance pulls the same dollar amount every period regardless of sales. A percentage (split) remittance pulls a set share of your card or deposit volume, so the dollar amount rises and falls with revenue — smaller on slow days, larger on strong ones.
How is the per-payment amount actually calculated?
Take the total you owe (amount advanced × factor rate) and divide by the number of payments in the term. A $50,000 advance at a 1.30 factor is $65,000 total; over ~126 business days that's about $516 daily, or about $2,500 across ~26 weeks.
Which schedule is better for seasonal or uneven revenue?
Businesses with lumpy or batched income often prefer weekly remittance, because a single draft is easier to plan around a known payment cycle. If sales swing sharply, a percentage-based split can help by pulling less when volume is low.
What happens if a payment can't clear?
A missed or returned draft can trigger fees and, depending on the agreement, may be treated as a default. The best prevention is choosing a schedule and payment size that comfortably fit your lowest-balance days from the start, and communicating early if cash flow tightens.
