ach loan payments

What is an ACH loan payment? It’s a payment that is debited directly from your bank account.  Today, most loans are collecting payments with ACH. What does ACH stand for? Automated Clearing house.

While most businesses are accustomed in writing out a check for their loan payments, ACH payments are very convenient. In fact, alternative lenders are utilizing this payment system as a way of collecting loan payments.  These types payments may seem uncomfortable in the beginning However, as you get use to this payment method it becomes much easier to manage.

Why are ACH payments convenient?  For example, if you write a check you need to order checks.  With this in mind, banks don’t offer checks for free.  Most banks charge a fee to order check books.  Also, imagine if you needed to write out 15 to 50 checks per month.  How much time would that consume?  As a business owner, you need to maximize time.  In summary, automated payments will save you time and money.