What Are Daily vs Weekly Payments?

Start from the purchased amount, which is the advance multiplied by the factor rate. Divide that by the number of payments in the term and you have the installment. A daily schedule spreads it over business days only, so weekends and bank holidays carry no debit. A weekly schedule divides it into fewer, larger debits. Neither changes what the merchant owes in total, but they change when cash leaves the account and how many chances a payment has to fail. Remittance as a share of card sales is a separate, variable approach.

Merchant fit is the practical question. Businesses that take payments every day, such as restaurants and retail shops, usually match a daily rhythm. Contractors, wholesalers, and service firms that are paid in lumps by invoice often fit a weekly schedule better, because their cash arrives unevenly. A rep qualifying a merchant on a first call can learn a lot by asking when money comes in, how seasonal revenue is, and what the balance looks like before each payday.

Neither schedule is cheaper or safer by default. Smaller daily debits are gentler on a steady-revenue shop but add up on slow days, while a large weekly debit can strain a thin balance if one invoice is late. A failed debit can trigger non-sufficient funds fees and default clauses under either schedule, and terms may change on renewal. Merchants and brokers should compare the whole structure, including the term length, rather than the frequency alone.