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Working Capital Loan Cost Calculator — Supply Chain Financing

Calculate the true cost of working capital loans for inventory and supply chain financing. Compare term loans, revolving lines, and asset-based lending — find the cheapest source of supply chain capital.

Quick answer: Working capital loan rates: bank LOC 7–12%, SBA 7–10%, fintech/online 15–35%, asset-based (ABL) 6–10%. On $500K average balance, the difference between 8% bank vs 25% fintech is $85,000/year.

💰 Supply Chain Working Capital Loan Cost Calculator

Seasonal borrowers don't use full year
Annual Financing Cost
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Annual Interest
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True APR (all-in)
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How to Use This Calculator

  1. Enter average outstanding balance — not the facility limit — the average amount actually drawn throughout the year.
  2. Include all fees — origination, annual maintenance, and unused line fees all increase your true APR above the stated rate.
  3. Enter use days — seasonal businesses that draw only for peak inventory periods have lower annual cost than the headline rate suggests.

Worked Example

$500K avg balance, 9.5% rate, 1% origination, $2,500 annual fee, 180 days use, compare to 22% fintech.

  1. Annual interest: $500K × 9.5% × 180/365 = $23,493
  2. Origination: $5,000
  3. Annual fee: $2,500
  4. Total: $30,993. True APR: 6.2%
  5. vs 22% fintech: saves $27,007/year

Bank LOC at 9.5% appears expensive vs the 6.2% true APR because seasonal use reduces actual cost. Fintech at 22% would cost $54K+ for the same need. Build banking relationships during cash-flush periods to secure lines before you need them.

Frequently Asked Questions

ABL lines of credit secured by inventory and receivables. Borrowing base = 85% of eligible AR + 50–65% of eligible inventory. As you buy more inventory or generate more AR, your available credit increases automatically. Better for growing businesses than fixed term loans. Rates: prime + 1–4% (6–10% today). Requires monthly/quarterly borrowing base certificates.

Ranked by typical cost: (1) Trade credit / net terms from suppliers (free if paid on time). (2) Customer prepayments or deposits (negative cost). (3) Bank revolving LOC (6–12%). (4) Asset-based lending (7–11%). (5) SBA loans (7–10%, 10-year term). (6) Supply chain finance programs from buyers. (7) Fintech/online lenders (18–40%). Always maximise free credit before paid financing.