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Calculator · USD estimates

Compare working capital offers.

Short-term working capital pricing gets misread when the discussion stops at factor rate. This page turns two offers into the numbers that matter most in practice: gross and net cash, financing cost, total payback, and payment cadence. Compare the same usable cash amount before judging which offer costs less.

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How to use this calculator

Important: A factor rate is not an annual percentage rate. The calculator models fixed payback and the upfront fees you enter. Blank fees are excluded, not assumed waived. It does not model reconciliation rights, holidays, defaults, renewals, early payoff terms, or other provider-specific contract terms. It does not assess affordability.

Deal compare

Working Capital Offer Comparison

Enter each gross advance, factor, payment count and any upfront fees. Net cash, financing cost and scheduled repayment are shown separately. Load the example offers to explore a cost-versus-payment tradeoff.

Deal A

Enter the first written offer. All amounts are USD.

Enter only fees outside the factor. Do not count the same fee twice. Enter 0 if the written offer confirms none; leave blank if unknown. Net cash subtracts both types of upfront fee.

Monthly equivalents use 260 business days or 52 weeks per year. Actual holidays and remittance schedules may differ.

Deal B

Enter the second written offer. All amounts are USD.

Enter only fees outside the factor. Do not count the same fee twice. Enter 0 if the written offer confirms none; leave blank if unknown. Net cash subtracts both types of upfront fee.

Monthly equivalents use 260 business days or 52 weeks per year. Actual holidays and remittance schedules may differ.

How to interpret the result

Cheaper is not always easier

A lower-cost offer can still create worse weekly or daily strain if the payback window is too compressed for the business rhythm.

Check payments against actual cash flow

The monthly equivalent describes repayment timing. Affordability depends on cash available after payroll, suppliers, taxes, existing debt and other business costs. The calculator does not collect that information or determine affordability.

Use the outputs as a screen

The better offer still depends on remittance mechanics, renewal pressure, documentation requirements, and whether this type of working capital is the right product at all.

Advisor lens

When I would actually like this kind of working capital, and when I would slow the file down.

When working capital can be the right tool

Short-term timing gaps, inventory turns, bridge payroll, or urgent receivables mismatches can justify this kind of working capital if the business can clearly carry the remittance rhythm.

When I start pushing back

If the monthly drag is already crowding payroll, taxes, or vendor terms, a fast approval is not enough. That is when LOC, factoring, or a smaller structure may be cleaner.

What makes the file stronger

Recent bank statements, a coherent use of proceeds, and a realistic payback story matter more than trying to sound polished. Good files usually look consistent, not dramatic.

Nicolas Lescalier is a Funding Manager at Premium Merchant Funding. He acts as a direct lender on select deals, works with an extensive network for co-funding, and helps arrange financing through third-party providers. All financing is subject to underwriting and approval and may not be available in every province, territory, or state, or for every business. Terms, costs, and timing vary by provider and applicant. Website calculators and examples are educational estimates, not offers or commitments to fund.