LexiconGovernance
Payback threshold
حد الاسترداد
Definition
The payback threshold is the longest branch payback a board will accept, set in writing before the year's first commitment. The Doctrine default is 18 months or less as healthy, 18 to 30 months as stretched, and over 30 months, or no payback at all, as “not yet”. Each group calibrates it to its own cost of capital.
In plain words
The ceiling on how long you will wait to get a branch's money back.
Also searched as
- payback limit
- maximum payback
- payback bands
- حد الاسترداد
Try it on your numbers
The Branch Gate applies this rule before you sign the next branch lease: five numbers about the site and one of three verdicts, sign, sign with conditions, or not yet.
Canonical thresholds
| Threshold | Verdict |
|---|---|
| ≤ 18 months | Healthy |
| 18–30 months | Stretched |
| > 30 months, or no payback | “Not yet” |
Source: Doctrine §2 · Definitions · Doctrine §6 · Doctrine thresholds
Where it is used
In the Doctrine and the Playbook
Related terms
How to cite this definition
Alhajj, S. (2026). “Payback threshold”. In The Revenue Engineering Lexicon, version 1.0. Riyadh. https://seiflden.com/lexicon/payback-threshold/