Why DTC Brands Are Ditching Daily Sweeps For Flexible Remittance

Daily cash sweeps and uncapped payment terms are common in revenue based funding, and they often feel like a simple solution early on. Fast access to capital, no equity dilution, and repayments tied to revenue appear aligned with how DTC ecommerce brands operate. But as brands scale, many founders discover daily sweeps quietly become restrictive, pulling cash out of the business at the exact moment growth should accelerate.

Revenue based funding options like Shopify Capital and Wayflyer rely on daily sweeps and uncapped remittance structures.These models fail when growth succeeds and ultimately punish strong performance. As revenue increases, more cash is automatically siphoned away, limiting a brand’s ability to reinvest in inventory, marketing, and fulfillment during peak demand.

Flexible, capped remittance models are built for the realities of ecommerce growth, including uneven sales cycles, seasonality, and sudden surges in demand. Instead of draining liquidity during high performance periods, they preserve momentum and protect cash flow. As brands mature, founders are increasingly choosing capital that works with growth, not against it.

Founders Are Re-Evaluating Uncapped Repayment Funding Models

Many founders  and operators adopt daily sweep or uncapped repayment models early because they appear fast and frictionless. Quick access to cash without giving up equity feels like a clear win. But as brands scale, these structures, such as Shopify Capital’s daily payments or Wayflyer’s uncapped revenue based remittances, begin to break down just as momentum takes off. During strong revenue periods, especially peak seasons like BFCM or holiday surges, daily payments actively drain cash from the business.

Uncapped repayment terms go further by penalizing overperformance. The moment revenue accelerates, more capital is pulled out of the business. Instead of gaining flexibility during high demand periods, founders are forced to operate like early stage brands even as they enter a true performance phase.

In the first half of 2025 alone, revenue based funding providers, including Shopify Capital, issued $1.8 billion in merchant cash advances. This highlights how common uncapped repayment models remain across ecommerce. But widespread adoption does not mean founder friendly. These structures often prioritize the funding partner’s upside over a brand’s ability to reinvest and scale.

That is why more brands are shifting toward capped, flexible remittance models with predictable costs and non restrictive terms. Strategic funding becomes critical as brands scale and revenue accelerates.

Daily Sweeps and Uncapped Repayment Break Down Momentum

For founders and operators entering a true growth phase, daily sweeps and uncapped repayments can quietly turn success into a cash flow constraint. As growth triggers faster repayment, capital that should be fuel starts acting as a break to operations in a few critical ways:

1. Cash Flow Unpredictability: Daily payments may appear simple, but they reduce visibility and control. Constant deductions make it harder to plan inventory purchases, marketing spend, and payroll, especially during lower cash days. 

2. Overperformance Penalties: Daily sweeps and uncapped repayment models are built for speed, not scale. When revenue accelerates, often during peak periods, a fixed percentage of sales ranging from 5-15% is siphoned away. The faster a brand grows, the more reinvestment capacity shrinks. 

3. Shortened Growth Runways: With capital flowing out continuously, founders and operators often hesitate to place larger inventory orders or scale ad spend aggressively, even when demand is strong. Growth slows not because opportunity disappears, but because liquidity does. 

4. Limited Financial Visibility: As payments fluctuate with performance, forecasting becomes more difficult. Founders struggle to model total costs, assess true margins, and maintain confidence in long term planning.

Instead of relying on  daily sweep providers like Shopify Capital and Wayflyer, founders are turning to capped remittance structures to gain more  control over cash flow during high growth periods.

Flexible, Capped Remittance Is Gaining Favor

Nearly 38% of ecommerce businesses fail due to cash flow shortages, making liquidity preservation just as important as access to capital. Flexible repayment structures align cash outflows with revenue cycles instead of forcing rigid daily deductions.

Founders should not be penalized for success. With uncapped payments and daily sweeps, the faster a brand grows, the faster these structures begin working against it.

Clearco takes the opposite approach. By offering capped, weekly payments and flexible remittance terms, Clearco helps brands protect cash flow while maintaining momentum. Predictable repayment structures allow founders to reinvest confidently, whether that means launching new campaigns, placing larger inventory orders, or investing in fulfillment and technology.

By using strategic growth capital, DTC brands gain the freedom to move quickly when opportunity strikes. Ecommerce growth is uneven, seasonal, and opportunity driven. The best funding structures reward strong performance and  protect momentum.

Tired of being punished for overperformance? See how Clearco’s capped payment model replaces daily sweeps with flexible remittance designed for scaling DTC brands.