Unit quiz: Net proceeds, remittances and cash capacity

Check understanding, separately from reading

5 questions · 80% to pass · no timer. This quiz checks the lessons in this unit. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

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Question 1

Harbor: gross $50,000, factor 1.3, fees $2,500. Purchased amount = $50,000 × 1.3 = $65,000. Net = $50,000 − $2,500 = $47,500. Purchased minus net = $17,500. No other costs are assumed in this illustration.

Owner: “How much can I actually spend from this advance?”$47,500, assuming the only deductions are the stated $2,500 fees.The headline $50,000 is all usable, regardless of deductions.

Question 2

Harbor’s 1.3 factor produces $65,000 on $50,000 before accounting for deducted fees. The same purchased amount collected more quickly has different annualized economics. We deliberately do not invent an APR from an incomplete schedule.

Owner: “Is that factor my annual interest rate?”Yes. Subtract one from the factor and call the result the annual rate.No. We need the dated funding, fees and payment schedule and the applicable APR disclosure.

Question 3

Assume $65,000 over 100 scheduled debit days: $650 per day. Five debit days = $3,250; a 20-debit-day month = $13,000, while 23 debit days = $14,950. These are calendar scenarios, not universal monthly equivalents.

Owner: “Can I budget every month as four debit weeks?”No. Count actual scheduled debit days and overlay payroll and bills.Yes. Every month contains exactly four payment weeks.

Question 4

Illustrative share: 10% of $4,000 eligible daily receipts = $400; 10% of $3,000 = $300. A fixed $650 debit does not automatically become either amount. The agreement’s revenue definition and adjustment process control the actual transaction.

Owner: “Sales fell, so tomorrow’s fixed debit must drop automatically?”Yes. The word reconciliation guarantees an automatic change tomorrow.Not necessarily. Let us verify and use the written reconciliation procedure with accurate records.

Question 5

Fictional weekly receipts $12,000 minus operating outflows $8,500 = $3,500 before financing. Less $3,250 remittance leaves $250. If receipts fall to $10,800 and costs stay fixed, room is $2,300 and residual is -$950. No other obligations assumed; add them if present.

Owner: “The base case is positive, so is this safe?”No. The thin base cushion and negative stress result require further review and possibly no financing.Yes. Any positive base residual proves suitability.

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