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Use a business and a defined operating cycle as the assessment unit. Separate a temporary timing gap from persistent negative operating cash flow. Preserve seasonality and the contractual maturity of the financing.

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Financial-risk measures

Do not compute inventory days for a service business without inventory or compare its cycle directly with a retailer’s. Identify whether receivable days use credit sales or total revenue.

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Public benchmark sources

ISED’s 2024 credit-condition report identifies working or operating capital as the intended use for 49% of debt-financing borrowers in its survey. This describes financing purpose, not an acceptable liquidity ratio or default rate. Match operating-cycle benchmarks to industry, business size and season. The AMLOK public-record inventory includes financial facts and financing observations, but invoice-level collection timing requires a suitable ledger with payment links and sufficient follow-up.

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AMLOK evaluation

Test aging-bucket accuracy, invoice and payment reconciliation, forecast error and cash-gap identification. Use an as-of snapshot so later payment dates and backfilled accounting entries do not leak into the decision inputs. For Signal, measure confirmed liquidity changes, false alerts per business-month and warning lead time against a defined funding or payment event. Compare a seasonal baseline with the evaluated model on the same business-periods. Report uncertainty when ledger or payment coverage is incomplete. Follow the financial analysis protocol and common benchmark contract.