Do MCA Payments Come Out on Weekends and Holidays?
Usually not. Daily debits on a merchant cash advance run by ACH, and ACH moves only on bank business days, so weekends and federal bank holidays are skipped. Some contracts make up a missed day by taking two debits the next business day, and a split of card sales can follow the processor's schedule instead. Check your contract so a Monday after a long weekend doesn't surprise you.
What does this look like with real numbers?
Say your daily debit is $400. Over a normal week that's $2,000 across five business days. If Monday is a bank holiday, the week has four debits, $1,600, unless the contract doubles up on Tuesday. If it does, Tuesday takes $800. Keep that much in the account after a holiday.
How do card splits handle weekends?
If the funder takes a share of card sales through your processor, it takes its share when the processor settles, which includes weekend sales settled on Monday.
How do you plan for the Monday after a holiday?
On a fixed daily debit, a long weekend can bring your normal debit on the next business day while weekend sales are still settling. Keep enough in the account on that morning to cover the debit, or ask the funder whether it skips or doubles payments after a bank holiday. A returned debit costs more than the few days of float, so a small cushion around holidays is worth it.
Can two debits land on the day after a holiday?
Yes, on some daily plans. The debit file runs on the next business day, and contracts that catch up missed days put two or three debits on that Monday or Tuesday. Read the payment section of the contract and keep extra in the account before a long weekend.
What should you ask the funder?
- Do debits run on bank business days only?
- Do you make up skipped days, and when?
- Can we move to weekly payments?
- What day of the week would a weekly debit hit?
Where can you check your own numbers?
The short version is in the Repayment FAQ. To check the numbers on your own advance, use the MCA payment calculator.
Where do these facts come from?
Want a second look at your advance?
Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.