This worksheet answers how much line of credit to ask for, by hand. It works three ways: the largest cash gap your bills create, a revenue check, and a receivables base. The smallest result is a sensible starting request. A funding partner sets the actual limit after its own review; the worksheet only frames the conversation.
How Much Line of Credit Can I Get? Calculator Steps for Clovis, NM
Work these three methods with your own figures. Each takes a few lines on paper.
Method 1: the cash gap
- List each week's bills for the next 13 weeks.
- List each week's expected deposits.
- Running total: deposits minus bills, week by week.
- The point where the running total sits furthest below zero, written as a positive number, is the gap.
Method 2: a revenue check
Take annual revenue from the last tax return and work out one-tenth of it. Partners set their own limits, so this is only a reference point for the request, not a rule.
Method 3: a receivables base
Add up customer invoices less than 90 days old and multiply by an advance rate. Partners set advance rates; 80% is used below only as an invented figure.
A Worked Example for a Curry County, NM Business
Illustration only, invented figures: a Curry County, NM supplier with $520,000 in annual revenue, $64,000 in invoices under 90 days, and a 13-week plan whose running total falls to minus $18,000 in week 6.
| Method | Calculation | Result |
|---|---|---|
| Cash gap | Deepest point of the running total below zero | $18,000 |
| Revenue check | $520,000 x 10% | $52,000 |
| Receivables base | $64,000 x 80% | $51,200 |
In this invented example the cash gap, $18,000, is the smallest of the three and the most specific, so it is the request to start with; the other two show it is not out of scale with the business.
Building the 13-Week Plan From Bank Statements
The cash gap method rests on a 13-week plan, and the plan rests on your own records. Pull the last three months of business bank statements and sort every line into deposits and payments. Deposits: card settlements, checks from customers, transfers in. Payments: payroll, rent, suppliers, loan and lease payments, taxes. Average each weekly category, then adjust for anything you know is coming, such as a large order, an annual insurance premium or a tax payment. A partner reviewing a line of credit request reads the same statements, so the plan and the review start from one source.
How to Read the Result in Clovis, NM, in Plain Terms
If the cash gap is far below the other two, the business needs less credit than it might carry; asking for the gap keeps fees on unused limits down. If the gap is far above them, the shortfall may be bigger than a line is built for, and a term loan or working capital may fit better. If all three land close together, the request is well framed.
Interest on a line runs only on the drawn balance. Illustration only, invented figures: $18,000 drawn for one month at an invented 12% annual rate costs about $180 in interest in this invented example.
Where This Line of Credit Worksheet Stops
- It does not predict a partner's decision or limit.
- It ignores credit history, collateral and existing debts, which partners read.
- Uneven weeks the plan misses will change the gap.
- It does not price fees; read each offer for draw and annual fees.
Curry County, NM had 1,018 employer establishments in 2023, 485 of them below five employees (County Business Patterns). In a business that size, writing the 13-week plan down is part of the owner's own job.
After the Worksheet: Next Step for a Clovis, NM Owner
Phone (575) 242-8764 or send the request form with the gap in mind. The business line of credit page explains draws, paydowns and borrowing base lines, and more guides are on the resources page.
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