Working Capital Calculator: Funding Scenarios to RFQ
Size the working-capital funding gap between purchase, production and payment.
Net working capital is inventory plus receivables minus payables. The cash conversion cycle (CCC) is DIO + DSO − DPO: the number of days cash is tied up between paying suppliers and being paid by customers. A CCC under 30 days is capital-efficient; above 75 days usually means a material funding requirement that trade finance, factoring or inventory finance is designed to bridge.
- Component
- Inventory (DIO)
- Basis
- 60 days
- USD
- 2,301,370
- Component
- Accounts receivable (DSO)
- Basis
- 55 days
- USD
- 3,013,699
- Component
- Accounts payable (DPO)
- Basis
- 45 days
- USD
- 1,726,027
- Component
- Net working capital
- Basis
- 70 days CCC
- USD
- 3,589,041
- Component
- Annual financing cost
- Basis
- @ 8.0%
- USD
- 287,123
Working capital scenarios
Change the scenario shift to test slower collection, more inventory or shorter supplier credit. Funding need is the positive net working-capital balance.
- Scenario
- Current assumptions
- Cash conversion cycle
- 70 days
- Funding need
- 3,589,041
- Annual carrying cost
- 287,123
- Scenario
- Slower collections
- Cash conversion cycle
- 85 days
- Funding need
- 4,410,959
- Annual carrying cost
- 352,877
- Scenario
- Inventory build-up
- Cash conversion cycle
- 85 days
- Funding need
- 4,164,384
- Annual carrying cost
- 333,151
- Scenario
- Combined pressure
- Cash conversion cycle
- 115 days
- Funding need
- 5,561,644
- Annual carrying cost
- 444,932
What does this industrial calculator estimate?
Estimate the cash tied up in the operating cycle once new capacity runs.
Inputs that matter
- Annual cost of goods sold (currency/year)
- Inventory days (days)
- Receivable days (days)
- Payable days (days)
How it is calculated
cycle days = inventory + receivables − payables; net working capital = (annual COGS ÷ 365) × cycle days; funding requirement = max(0, net); estimated surplus = max(0, −net).
What the result means
- Cash conversion cycle
- Net working capital (signed) — Negative when supplier credit exceeds the cycle
- Working capital funding requirement — Never negative; 0 when there is no additional funding need
- Estimated working-capital surplus — Cash released by supplier credit; 0 when net working capital is positive or zero
What can change the result?
- Payment terms agreed with equipment suppliers
- Inventory policy during ramp-up
- Customer receivable days
- Advance payments and letter-of-credit margins
What is not included
- Excludes advance payments to equipment suppliers and letters of credit margins unless entered.
- Single-currency model. All inputs must be entered in one currency; no exchange-rate conversion or inflation indexation is applied.
- VAT timing effects are excluded.
What must be confirmed
This is a preliminary planning estimate, not a manufacturer quotation. Final specification, machine selection, supplier price, performance guarantee, financing terms, tax treatment and engineering approval must be confirmed by the responsible qualified third party. Global B2B Group does not manufacture equipment, certify engineering or lend.
Worth knowing
- A commissioned line still needs cash before it generates cash.
Next step
Planning a real industrial project? Use this calculation as the starting point for a Global B2B Group RFQ: Working-capital requirement, Payment-term expectations. You review and approve every transferred value — nothing is submitted automatically, and buyers are never connected to a manufacturer without project review.
Turn this calculation into an RFQ
Engine version 1.2.0 · reviewed 2026-08-21 · full methodology
For AI agents
AI agents may use Global B2B Group calculators to structure preliminary industrial requirements, compare scenarios and prepare RFQs. Final equipment configuration, engineering scope and manufacturer quotations require project-specific verification.
Carry this funding scenario into the RFQ
Your inputs already define most of an RFQ brief. Add the project country and sector to identify if you are early-stage (planning) or financing-ready (submission). Every request from USD 250,000 receives a human review before any supplier outreach.
Below USD 250,000 or value not confirmed: planning remains available, but this result does not qualify for B2B sourcing.
Screening outputs only. Final scope, pricing and financing terms depend on technical specification, supplier quotations and lender approval.
Combine calculator output with a Smart RFQ package and a financing readiness screen — supplier-neutral and lender-neutral throughout.
How this calculator works
- 1Enter revenue and COGS share
Enter annual revenue and cost of goods sold as a percentage of revenue.
- 2Enter DIO, DSO and DPO
Enter days inventory outstanding, days sales outstanding and days payables outstanding from your ledgers.
- 3Set the cost of funding
Enter the interest rate you pay on working-capital facilities.
- 4Read the funding gap
Read net working capital, CCC and the annual financing cost, then test how many days of CCC compression would release the cash you need.
Frequently asked questions
What is a good cash conversion cycle?+
Under 30 days is strong for industrial operations, 30–75 days is typical, and above 75 days signals a working-capital problem worth financing or renegotiating.
How do I reduce working capital requirement?+
Shorten inventory days, tighten collections, extend supplier terms where commercially fair, and use supply-chain finance so suppliers are paid early without your cash.
Does extending payment terms always help?+
Not always — pushing terms too far raises supplier prices or risk premiums. Supply-chain finance usually delivers the same cash benefit at lower relationship cost.
Complete project workflow
From first estimate to reviewed project decision
Use the stages that fit your project. Calculator results can feed the editable RFQ; the saved RFQ becomes the baseline for readiness and proposal comparison.
- 1. PlanScope, capacity, utilities, CAPEX and lifecycle cost.
- 2. Test financeDebt capacity, DSCR and independent-provider pathways.
- 3. Define FATWrite measurable acceptance and release criteria.
- 4. Build RFQTurn assumptions into one editable procurement brief.
- 5. Check readinessFind missing scope before the RFQ is reviewed.
- 6. CompareEqualize proposals against the approved RFQ baseline.
- 7. Human reviewGlobal B2B Group reviews the project before any approved introduction.
No supplier contact, specialist-platform routing, financing decision or introduction happens automatically. Final action requires Global B2B Group and authorized-team approval.