How much of what comes into an SME account is really revenue?

$778,800Illustrative worked example

Revenue overstated by inflows

counted as revenue by a categoriser; $528,800 of it was customers paying

What was observed

$778,800 came into the business account over six months.

What a generic approach says

A categoriser counts all of it as revenue.

What the engine read

True revenue was $528,800. The rest was $180,000 of loan proceeds, a $45,000 owner injection and $25,000 moving between the business's own accounts.

What it meant for the decision

Net surplus was $174,200, not $516,820: repayment capacity was overstated roughly three times.

Figures are reproduced from Luminnovate's research records. Data sources are available on request; methods are proprietary.