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T240 · Cat-20 · SME Financial Health · Working Capital

Find your working capital gap in seconds

Input AR days, AP days, and inventory days to calculate your Cash Conversion Cycle and the funding gap tied up in your operating cycle. Get plain-language financing instrument recommendations — overdraft, invoice finance, revenue-based finance, or trade credit — and export a Policy Mandate JSON funding profile. Anchor tool for the Cat-20 SME Financial Health Hub.

CCC · Working Capital Invoice Finance · RBF SME Lending Zero PII · Client-side

Last Reviewed · 2026-05-12

Configuration

Currency

Industry Sector

Annual Revenue (last 12 months)

Please enter a valid positive revenue amount.

AR Days (DSO) days to collect

days

Enter a value between 0 and 365.

AP Days (DPO) days to pay suppliers

days

Enter a value between 0 and 365.

Inventory Days (DIO) 0 for service businesses

days

Enter a value between 0 and 365.

Working Capital Analysis

Cash Conversion Cycle

—

days

AR + Inv − AP

Daily Revenue

—

per day

Risk Tier

—

working capital position

Cash Conversion Cycle — Component Breakdown

Inv

AP (offset)

AR Days: — Inventory Days: — AP Days (offset): —

Working Capital Funding Gap

—

Revenue Sensitivity Analysis

−20% Revenue

—

— vs base

● Base Case

—

your inputs

+20% Revenue

—

— vs base

Financing Instrument Recommendations

🔬

Need a full stress lab for your cash position?

This tool gives you the working capital gap entry point. For a comprehensive 13-week cash flow model with shock scenarios, seasonal adjustments, and board-ready reporting, use Tool 89 — Treasury Liquidity Stress Lab →

Methodology & Citations

Cash Conversion Cycle formula: CCC = DSO + DIO − DPO. Working Capital funding gap: Revenue × (CCC ÷ 365). Source: Gitman, L.J. (1974), Estimating Corporate Liquidity Requirements.
Financing instrument thresholds based on UK Finance SME lending data 2024 and British Business Bank Small Business Finance Markets Report 2024.
Risk tier classification adapted from Atradius Payment Practices Barometer SME 2024 and ICAEW Business Finance Guide 2024.
CFPB 1033 / PSD3 open banking data signals — see T243 Open Finance Credit Signal Mapper for underwriting improvement modelling.

About This Tool

The Cash Conversion Cycle (CCC) measures how long cash is tied up in your operating cycle — from paying suppliers to collecting from customers.

CCC
= AR Days (DSO)
+ Inventory Days (DIO)
− AP Days (DPO)

A positive CCC means your business is funding a gap: you pay suppliers before customers pay you. A negative CCC (common in subscription or pre-payment models) means customers fund your operations.

The Working Capital Funding Gap translates the CCC into a cash amount:

Gap = Revenue × CCC ÷ 365

This is the amount you need to keep operations running smoothly at your current revenue level. [1] Gitman (1974), adapted

Benchmark reference: UK SMEs in manufacturing average 45–65 CCC days; services firms 20–40 days; retail 10–30 days. [2] UK Finance SME Report 2024

Policy Mandate — this tool outputs a validated Policy Mandate JSON funding profile, usable as an agent instruction set for open banking and fintech lending integrations.

Cross-links: For a full 13-week cash flow stress model use Tool 89. For revenue-based finance economics see T244.