Business9 min read·Updated 2 July 2026
Working capital: how much runway is actually enough?
A practical framework for sizing a credit line against seasonality, receivables and payroll without borrowing more than the business can support.
Map the timing gap
List when cash leaves the business and when invoices are collected. The peak gap, not the average month, usually determines the right facility size.
Stress the assumptions
Test slower collections, a lost customer and a higher input bill. A useful line gives breathing room without disguising a structurally unprofitable operation.
Review it regularly
Update the forecast as the business changes. A seasonal company may need a different limit and repayment pattern from a subscription business.