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MICROFINANCE5 MIN READ

Run the Household Cash-Flow Test

Calculate whether a proposed installment fits a household's real repayment capacity.

Samira requests $600. Proposed installment: $72 every two weeks. Average daily sales: $35 for 24 selling days per month. Food inputs and stall costs average $19 per selling day. Household obligations are $210 per month, plus $60 school fees due in the first repayment period. Capacity test: cash in -> business costs -> household obligations -> existing debt -> timing stress -> repayment margin. The common shortcut is approving from gross sales and clean character. That ignores shared household cash and the week when the installment actually lands. Cash in Estimate monthly sales: $35 x 24 selling days = $840.…

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