This calculator from Sprucebend Commercial Capital in Camden, New Jersey turns a merchant cash advance offer into a total to be remitted, a dollar cost and an estimate of business days to finish, from the factor, the holdback and average daily card sales; the advance itself is not a loan. The page also works cash conversion and cash flow gaps by hand.
What the Advance Calculator Works Out
Enter the advance amount, the factor and the holdback percentage from the offer, and your average daily card sales. The calculator multiplies the advance by the factor for the total to be remitted, subtracts the advance for the cost, and divides the total by the daily holdback amount for an estimate of business days. Results are arithmetic on the numbers entered, not an offer.
If the offer uses a fixed daily debit rather than a holdback share, divide the total by the debit to estimate the days instead.
Working Capital vs Cash Flow for Camden County, NJ Businesses
Working capital is a snapshot: current assets minus current liabilities on a given day. Cash flow is a film: money in and out over weeks. A business can show healthy working capital on paper while cash runs short in a given week, because receivables are counted as assets before they are collected. A funding need usually shows up in cash flow first, which is why partners read bank statements over months rather than a single balance sheet.
The Cash Conversion Cycle, Worked by Hand for a Camden, NJ Shop
The cash conversion cycle measures how many days cash is tied up between paying suppliers and collecting from customers: days inventory is held, plus days to collect receivables, minus days the business takes to pay suppliers. Illustration only, invented figures: a Camden, NJ shop holds stock 34 days, collects from trade customers in 21 days and pays suppliers in 30 days, a cycle of 25 days (our arithmetic: 34 + 21 - 30).
A shorter cycle frees cash; a longer one needs funding to cover. Faster stock turns, quicker collections or longer supplier terms each shorten it.
Cash Flow for a Camden County, NJ Medical Practice, Worked by Hand
Illustration only, invented figures: a practice runs $31,000 of monthly payroll and insurers take 52 days to pay claims. The cash tied up is roughly the payroll for those days, $53,733 (our arithmetic: $31,000 times 52 divided by 30). That figure is a starting point for sizing a line of credit; a card-sales advance reaches only the share of income paid by card, which for a practice is the patient portion.
A Contractor's Cash Flow Gap in Camden County, NJ, Worked by Hand
A contractor's gap runs from paying crews and suppliers to receiving a draw, plus retainage held to closeout. Illustration only, invented figures: if a job's draws arrive 75 days after costs are paid, the money tied up is roughly those 75 days of costs. The contractor page works retainage with numbers, and the line of credit page shows how draws are priced.
What the Advance Estimate Leaves Out
- Fees taken from the amount funded, which lower the cash actually received.
- Days with no card sales, which stretch the timeline.
- Any early payoff discount, which can lower the total.
- Reconciliation, which can adjust collections when sales fall.
Compare the advance's cost with working capital or a line of the same size in dollars. The merchant cash advance page explains factors and holdbacks, and the request form starts a conversation.
By Sprucebend Commercial Capital · Updated