The days between paying for stock and being paid by customers, and the working capital that gap ties up.
The cycle is the days customers take to pay plus the days stock is held, less the days you take to pay suppliers. The cash tied up is your daily turnover times the days customers take, plus your daily cost of sales times the days stock is held, less your daily cost of sales times the days you take to pay.
Seasonal swings. Run it for your busiest month as well as for the year.
Finance is subject to status and to the lender’s terms. A personal guarantee makes you liable for the company’s debt if it does not repay, and it can be enforced against your own assets, including your home. Nothing here is a personal recommendation.
The monthly repayment on a business loan, the interest over the term and the total you repay with the arrangement fee.
Work it out →Two loan offers side by side: the monthly payment, the total repaid with fees, and the difference in pounds.
Work it out →Your profit against all your loan repayments, new and existing, as the cover ratio a lender works out.
Work it out →Funding searches run on Swoop’s platform. Swoop Finance Limited is a credit broker and not a lender, and is authorised and regulated by the Financial Conduct Authority (FRN 936513). Buzz Accounting Ltd introduces businesses to Swoop and may receive a fee from Swoop when funding is arranged. Business funding is separate from the financial advice Equity & General Financial Services Limited gives through this website. Finance is subject to status, and a lender may ask a director for a personal guarantee.
If a lender asks you to guarantee the company’s borrowing, our advisers can advise on life cover for that debt.