Ask for too little and you're back in 60 days; ask for too much and you're paying for money that sits idle. The right number isn't a guess — it comes from three things every funder already looks at.
Start with the gap, not the dream
Working capital funds the gap between when you pay out (payroll, inventory, rent) and when you get paid (receivables, sales). Size the facility to that gap, not to the biggest number you can qualify for. A business with $40K in monthly expenses and 45-day receivables needs roughly a month and a half of cushion — about $60K — not $200K.
The 50–150% rule of thumb
Most short-term facilities approve between 50% and 150% of a month's revenue. If you do $80K a month, expect offers from $40K to $120K. Where you land depends on deposit consistency and how much debt you already carry.
Match the amount to the use
- Covering a slow season? Size it to the shortfall plus a small buffer — nothing more.
- Buying inventory at a discount? Size it to the purchase; the return pays the cost.
- Funding growth? Take what the new revenue can comfortably service, not the maximum offered.
The smartest owners borrow to a number their cash flow can absorb on a slow week. That's the figure worth applying for — and a five-minute conversation will tell you what you'd qualify for.