How Do You Build a 13-Week Cash-Flow Test for an MCA?

MCA comparisons and decisions · Business Funding Question

A source-backed answer for business owners comparing funding structures, costs, repayment, qualification, and risk.

Short answer

A thirteen-week cash-flow test lists expected weekly cash receipts, essential payments, existing debt, and the proposed MCA remittance to show the lowest projected bank balance. It is short enough to build from real invoices and bills but long enough to expose payroll cycles, rent, taxes, seasonality, and timing gaps that a monthly average can hide.

Start with the opening bank balance

Use available operating cash, not the accounting cash balance if checks or debits are outstanding. Keep restricted funds and tax reserves separate. Reconcile the starting figure to the bank before projecting.

Forecast receipts conservatively

List customer collections and processor deposits in the week cash is expected to arrive. Apply realistic delays and do not treat a proposal or unsigned contract as a guaranteed receipt. Separate ordinary operations from the one-time funding deposit.

Schedule every material outflow

Include payroll, payroll taxes, rent, inventory, vendors, insurance, sales tax, income-tax estimates, owner draws, existing loans, current advances, and the proposed remittance on its actual debit days. Small recurring charges should be grouped rather than omitted.

Run base and downside cases

Build a base case, then reduce receipts or delay a major customer in the downside case. Note the minimum balance, week of any shortfall, and how much reserve remains. If the funding itself does not create enough new cash before the shortfall, reconsider amount, product, or timing.

Practical example

A business begins with $30,000, expects $45,000 of weekly receipts, and pays $42,000 of weekly obligations before new financing. A proposed $5,000 weekly remittance creates a $2,000 weekly deficit unless the funded project quickly adds cash. The forecast makes the problem visible before the agreement is signed.

Business-owner checklist

• Reconcile the opening cash balance
• Use weekly receipt dates
• Include taxes and existing financing
• Enter the proposed remittance on actual debit days
• Run at least one downside scenario

Related DNVR Group guidance

• How Business Funding Works
• Business Funding Readiness Checklist
• Compare Business Funding Offers
• Can a Merchant Cash Advance Be Used for Payroll?
• Merchant Cash Advance vs. Invoice Factoring: Which Fits Your Cash Flow?

Sources and further reading

• U.S. Small Business Administration
• U.S. Small Business Administration

Updated August 2026. Prepared by DNVR Group using the cited public sources. Featured photo: Kelly Sikkema on Unsplash.