How an advance gets sized, and why the maximum is usually the wrong number
Take too much and the daily remit chokes the business. Take too little and you are back in sixty days. Here is how we think about the amount.
The most common mistake on a first advance is taking the largest amount approved. The second most common is taking too little and needing a second position two months later. Neither is the merchant's fault; both come from sizing to an approval instead of to a problem.
Size to the problem
The right amount is the one that solves the specific thing you told us about. Sixty that covers the truck and two payrolls is a sized advance. Sixty because sixty was approved is not. Your underwriter will ask what the capital is for and build the offer to that answer.
The daily-load test
Whatever the amount, the daily or weekly remit has to sit comfortably inside daily revenue with every other position included. Past roughly fifteen to twenty per cent of daily revenue going to funders, a business starts to choke. We size under that line, and if the amount you want does not fit under it we say so.
A first position is usually sized somewhere around one to one and a half times monthly deposits. Growth capital against a signed order or a second location can justify more. Capital to cover ongoing losses cannot.
The two-step path
Sometimes the right answer is a smaller first advance, a clean payment history, and a renewal that comes in larger and priced better. That is a roadmap, not a consolation prize. This deal is how you earn the next one.
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