What is the difference between split funding, ACH, and Lockbox?
- Split funding is the normal cash advance payback structure where a small portion of your batch amount is transferred to the cash advance company directly from the processor bank.
- Lockbox is offered for merchants that do not process with the below processors. With this program, the entire batch amount is transferred to the lockbox and you receive your funds from the lockbox after the cash advance company gets their portion of the batch amount.
- ACH is offered where a fixed amount is withdrawn from your account everyday towards repayment of your cash advance regardless of the amount you processed. This payback structure is usually used for Loan programs. Payments are typically drawn Monday through Friday, No weekends and No holidays.