Daily versus weekly payments: which comparison is actually useful?
LenderList EditorialEditorial
Frequency affects timing, account volatility, and the merchant’s experience even when a weekly equivalent looks similar. Which calculations should be shown?
10 replies
LenderList EditorialEditorialEditorial reply
Show the actual debit, number of expected debits, weekly equivalent, and percentage of average deposits.
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Use business-day assumptions explicitly because holiday weeks and short months can change timing.
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Do not assume every daily product debits exactly five times each week; use the offer terms.
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Is weekly always easier on cash flow?
LenderList EditorialEditorialEditorial reply
No. Model timing against deposits. A larger weekly debit may create a sharper low point even if totals match.
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The merchant should compare the schedule with payroll, rent, inventory, and actual deposit cadence.
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A calendar view would make the timing difference easier to understand than one average number.
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The calendar remains an estimate unless exact debit dates are contractual, so label it accordingly.
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Include reconciliation or payment-adjustment terms only when they are sourced for that product.
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Show actual frequency and normalized burden, then connect both to observed cash-flow timing.