How much working capital does a business actually need?

List what leaves the account over the period — payroll, rent, suppliers, the funding payment itself — and what reliably arrives. The difference, at its widest point, is the gap.

Add a margin for the payment arriving late, because it will. A fifth is a reasonable starting point for most businesses.

That figure is what to ask for. The offer will usually be larger, and the difference between the two is the most expensive money in the deal because it does nothing.

Repayment is a share of your revenue, so a larger facility means a larger amount leaving before you see it, every week, for the whole term.

It also uses up capacity. Funders calculate what your deposits support in total, so taking the maximum now means there is nothing available if something genuinely goes wrong in month four.

Taking less and repaying cleanly prices the next facility materially better. Funders reward a proven record more than they reward a big first deal.

Take the weekly payment and set it against your worst week in the last twelve months, not your average. If it does not clear that week, the facility is too big.

Confirm the money arrives before the obligation it is meant to cover, not after. A facility that funds the day after payroll has solved nothing.

If the gap is recurring rather than one-off, price a line of credit before taking a lump sum.