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Find out what your business could borrow — and exactly what would raise it.

Every bank underwrites two numbers on a business: what it owns (AR + inventory) and what it earns (EBITDA vs. debt). Whichever is lower sets your ceiling. This calculator shows you both, tells you which one's holding your business back, and what to change to unlock more. Two minutes, ballpark numbers are fine.

Your numbers

Four inputs, split into the two things a bank actually looks at.

Est. Borrowing Capacity
$0
Based on what you own
Collateral Loan
Banks will advance against your receivables and inventory — this is your borrowing base.
Accounts Receivable under 90 days $500,000
Money customers owe you that isn't past due. Banks discount older receivables, so use invoices aged under 90 days.
$0$5M
Enter exact amount
Inventory on hand $750,000
Raw materials, work-in-process, and finished goods at cost. Banks typically lend against a portion of this.
$0$10M
Enter exact amount
→ Supports $0
Based on what you earn
Cash Flow Loan
Banks want your EBITDA to comfortably cover existing debt plus whatever new debt you take on.
Annual EBITDA $800,000
Earnings before interest, taxes, depreciation & amortization — roughly your operating cash generation before financing.
$0$10M
Enter exact amount
Existing annual debt payments $200,000
Total principal + interest you already pay each year on current loans and lines. Enter $0 if you have no debt today.
$0$3M
Enter exact amount
→ Supports $0
Let's work on it together →
Borrowing base (collateral)
$0
80% of AR + 50% of inventory
Current debt coverage (DSCR)
—
EBITDA ÷ existing debt payments
Annual payment headroom
$0
New debt service you can add at target coverage
⚙ Lending assumptions (adjust to match your bank) ▼

These are the terms a bank negotiates with you. We've pre-filled market-typical values — adjust any of them to see exactly how much capacity that lever could unlock.

Capacity at these settings $0 Same as default bank terms
Target coverage (DSCR) 1.25x
Most banks want EBITDA of at least 1.25× total debt payments.
1.00x1.75x
Assumed interest rate 8.5%
Used to convert payment headroom into a loan amount.
4%15%
Loan term (amortization) 5 yrs
Longer terms lower the payment, so cash flow supports more principal.
1 yr10 yrs
Advance rate on AR 80%
Share of eligible receivables a bank will lend against.
50%90%
Advance rate on inventory 50%
Share of inventory value a bank will lend against.
0%75%
Want strategies to raise this number?

Grab our free guide, How to Manufacture for Profit — practical ways to strengthen cash flow and make your business more bankable.

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Want to know what a bank would really say?

This tool gives you the shape of the answer. A 30-minute strategy session gives you the real one — we'll pressure-test your numbers, spot what's holding your capacity back, and map the fastest path to a bigger, cheaper facility.

Schedule Free Strategy Session → Learn About Schapira CPA

33 Bartlett St, Suite 204, Brooklyn, NY • (212) 380-6309 • schapiracpa.com

Schapira CPA works exclusively with manufacturing and production businesses across the New York, New Jersey, and Connecticut tri-state area — typically in the $2M–$50M revenue range. Cash flow and bankability are the two things we spend most of our time on with businesses like yours.

This is an estimate, not a lending commitment. Every bank underwrites differently. Real decisions turn on eligible collateral (concentration limits, ineligibles, aging, and appraised inventory value), the exact coverage definition used (some lenders subtract capex, taxes, and owner distributions from EBITDA), personal guarantees, industry, and your credit history. Figures here use simplified, market-typical assumptions and treat all facilities as a single number. Use this to get oriented — then talk to your lender or to us before making decisions.

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