BANKING GLOSSARY
ACH
Automated Clearing House
An electronic network used for bank-to-bank payments in the United States.
What does ACH mean?
An electronic network used for bank-to-bank payments in the United States. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
ACH in context
A lender collects scheduled loan payments by ACH debit.
Why it matters in financing
ACH can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related banking terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.