Operate
Size the working capital an ecommerce acquisition will actually need at close. Inventory + operating reserve + AR − AP + lender-ask readout. Free. No signup.
Total working capital
$290,000
Cash the business needs tied up to operate at current velocity
| + Avg inventory on hand | $175,000 |
| + Operating reserve (3 mo) | $135,000 |
| + Accounts receivable (3 days) | $25,000 |
| − Accounts payable float (30 days) | $45,000 |
| = Total | $290,000 |
SBA 7(a) acquisition loans can include a working-capital tranche. Bring this total to the lender on day 1 — retrofitting a working-capital line after close is slow and expensive, and running short starves the business during the new owner's ramp.
Combines inventory cash with operating reserve and cash-conversion float. Use the Inventory Forecaster to populate the inventory value; use this total to ask for the right-sized SBA working-capital tranche at close rather than retrofitting a line of credit later.
Next step
5-minute SBA pre-qualification through eCommerceLending. No credit pull.
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Because they budget for the down payment and closing costs but forget that the business itself is a cash-consuming machine between close and first customer payment. Inventory sits for weeks, ad spend goes out every Friday, payroll hits every other Tuesday — and marketplace payouts lag by 14–30 days. Running a business on day 1 without working capital means taking on credit-card debt inside month 1.
The Down Payment calc estimates the cash-flow buffer (months of OPEX on hand). This calc adds the structural working capital required by the cash-conversion cycle — inventory, AR, and AP float — which is materially larger for product businesses than for pure digital services. Use both together: the Down Payment calc is for SBA underwriting, this calc is for operating reality.
Days between paying for inventory and collecting from a customer. For DTC ecommerce: inventory days (≈30–60) + AR days (≈0–3) − AP days (≈30–60). A well-managed business has a cycle under 30 days; a stressed one runs 60–90 days and needs a line of credit to bridge the gap.
Yes, and a new owner should. Moving from 'cash on delivery' to Net 30 on your #1 supplier can free up a full month of AP float. Shortening customer payment terms is harder for DTC (customers pay upfront) but matters if the business has any wholesale channel. Use the calc to quantify the working-capital savings of each lever.
SBA 7(a) acquisition loans can include a working-capital tranche on top of the acquisition loan. Lenders prefer to size this correctly at close rather than add a line of credit after — it costs less, funds faster, and counts toward the same guaranty. Bring this estimate to the lender in your initial package.