How the math works (plain text)
This is the same logic the interactive tool runs, stated in plain text.
Payment burden = (monthlyized existing advance payments + monthlyized proposed payment) ÷ true average monthly deposits. To monthlyize: a daily payment ≈ ×21 (business days per month), a weekly payment ≈ ×4.33, a monthly payment ×1. The band reads: under 10% of deposits reads serviceable (burden usually isn’t the objection); roughly 10–15% reads strained / getting tight; above 15% and up to 25%, many desks pass on adding a position; at 25% or more the burden reads unserviceable and consolidation or restructuring is the honest play.
Worked example (the calculator’s defaults plus a proposed payment): $80,000 in true monthly deposits, one existing advance at $450/day (≈ $9,450/month), and a proposed new payment of $200/day (≈ $4,200/month). Total obligation $13,650 ÷ $80,000 = 17.1% — in the strained band where many desks pass on adding a position; that file is a consolidation conversation, not a stack.
Why this one number decides so many deals
Underwriters reconstruct this exact math from the bank statements: every existing advance payment monthlyized, plus the proposed payment, over true deposits. As the ratio climbs past roughly 10–15% of deposits, files read strained; well beyond that, most desks call it unserviceable — because if cash tightens, someone doesn't get paid. When the math fails, the play isn't shopping the file harder — it's a different structure. See the second-position placement guide for consolidation and product alternatives, and the submission checklist for showing this math in your notes before underwriting asks.
Calculator FAQs
Burden too high? There's usually still a deal.
Consolidation-style options and alternative products exist for exactly these files. Send it and let the desk find the structure.
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