If you’re a business owner and still feel broke despite making consistent revenue, you’re not alone. Many businesses in debt are unknowingly caught in a cycle where they’re constantly spending money not to grow, but simply to stay alive.

At the heart of this cycle is a repayment system most owners don’t think twice about when they start: daily debits.

Let’s break down why daily debits might be the reason your business feels like it’s stuck in the same place, month after month.

What Are Daily Debits?

Daily debits are automatic loan repayments that are withdrawn from your business bank account every day and sometimes even multiple times a day. They are most common with merchant cash advances (MCAs) and short-term online loans.

They sound convenient at first. Lenders market them as “small, manageable” payments taken daily instead of all at once. You might hear phrases like:

• “No large monthly payment to worry about.”
• “A simple way to repay as you earn.”
• “Fixed daily payments, no surprises.”

But in reality, these payments can quickly eat into your cash flow and leave you with little to operate your business.

The Trap Starts Small

It usually starts with one loan. You may have needed funds urgently for payroll, supplies, or equipment repair. You got approved quickly, and the money landed in your account the next day.

But soon after, the lender starts pulling money out of your account every day. You feel it. The cash is going out faster than it’s coming in, so you take out another loan just to stay afloat. Then maybe another.

Instead of building a stronger business, you’re now spending each day trying to keep up with repayment schedules.

Signs You're Paying to Stay Broke

You might not have realized it yet, but there are a few key signs:

1. Your revenue looks good, but your cash flow is always tight

You’re making money, but you’re not keeping much of it. Most of your daily earnings are going toward loan repayments.

2. You’re constantly shifting money

You’re moving funds around to cover different lender deductions, paying vendors late, or juggling accounts to avoid overdraft fees.

3. You’re borrowing more to cover previous loans

You’re not borrowing to invest or grow - you’re borrowing just to survive. And that cycle is hard to break.

Daily Debits Kill Flexibility

Running a business means dealing with ups and downs, good months, bad months, seasonal dips, and surprise expenses. But daily debits don’t care about that.

Even if your business is slow one week, the same amount gets withdrawn. There’s no room to adjust. No pause button. And no relief.

Eventually, daily debits stop being a repayment method. They become a daily drain that keeps you stuck in place.

Hidden Costs That Sneak Up

1. Overdraft and NSF fees

If the daily debit hits before your deposit clears, your account might go negative. Your bank charges overdraft fees. Lenders may hit you with penalties too.

2. Missed opportunities

You don’t have cash on hand to take advantage of bulk inventory deals, invest in marketing, or hire help. You're surviving, not scaling.

3. Stress and burnout

The constant pressure to meet daily deductions affects your decision-making. It keeps you anxious and reactive, instead of focused and strategic.

More Revenue Won’t Fix It

A common myth is that once you “just make a little more,” you’ll catch up. But in a daily debit cycle, even when sales go up, your repayments often go up too. Especially if you’ve taken more than one loan.

So while your business might be making more, you still feel broke.

What you need isn’t just more revenue. It’s better control over how your revenue is used. You need space to let your cash flow work for you, not vanish before you can use it.

Why Traditional Growth Isn’t Happening

Let’s say your business brings in $30,000 a month. But between three loans, you’re paying $1,000 a day in debits.

That’s $22,000+ per month gone before you pay rent, staff, suppliers, or yourself.

So even if your top-line revenue looks good, your operating budget is too thin to actually grow. You're working harder and earning less.

So What Can You Do?

1. Pause and reassess

Look at all your repayment obligations. Total them up. Compare that to your revenue. If over 50% of your monthly revenue is going toward debt, your business is under serious pressure.

2. Stop borrowing to repay borrowing

It might feel like the only way to avoid default, but it creates a dangerous loop. Each new loan increases your risk of collapse.

3. Explore debt relief or restructuring

There are options to consolidate or negotiate these loans into a more manageable monthly plan. This can slow the drain and give you time to breathe.

4. Speak with a financial advisor or specialist

You don't have to face this alone. Many business owners find that having someone help map the way out makes a big difference in how quickly they recover.

You're Not Alone

Thousands of business owners across the country are stuck in similar situations. They didn’t plan to end up here. It wasn’t poor management or bad business. It was a short-term fix that turned into a long-term problem.

This system is designed to get you money fast. But it rarely gives you the support to repay it without hurting your business.

And the longer you stay in it, the harder it gets to break free.

Final Thoughts: Stop Feeding the Cycle

Daily debits may seem small at first, but they’re powerful enough to keep even profitable businesses running in place.

If you feel like you’re working harder than ever and still always short on cash, it might not be your business that’s broken. It’s the repayment model you’re stuck in.

You can get out. But it starts with stepping back, facing the numbers, and deciding to stop paying just to stay broke.

You built your business to grow; not just to get by.