How are you handling post-close working capital?

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May 07, 2026

by a searcher from Georgia Institute of Technology in San Francisco, California, USA

For those who’ve recently closed an SMB acquisition. What are you using for post-close working capital? Looking for recommendations on: • Working capital lines (bank facility vs. Mercury/Brex vs. RBF lenders like Pipe/Capchase) • Typical sizing relative to deal size • Rates / terms you’ve seen • Anything that worked well (or didn’t) for integration costs, AR timing, and early operational needs Closing on a low-7-figure B2B SaaS deal with recurring revenue. Want to set up the right credit stack from day one. Seeking $300K~ Appreciate any recommendations.
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Reply by a lender
from Cornell University in Los Angeles, CA, USA
Hi ^redacted‌ - nice to meet you. If you have not closed yet, get the working capital built into your SBA loan now. This is critical. Once you close, the business is treated as a startup under your ownership and it becomes very difficult to get financing for at least two years. The time to solve this is before closing, not after. Typical working capital sizing is around 10-15% of the total loan amount. You can also dig into the actual numbers and calculate roughly 3 months of operating expenses, then use whichever makes more sense for the deal. You can also ask your lender for a blend of working capital baked into the 7(a) term loan plus a revolving line of credit. The rate on the working capital portion is baked into your overall 7(a) rate, so it is the cheapest money you are going to get. For a revolving line of credit through a top tier bank, I have seen Variable rate adjusting on a calendar quarterly basis at Wall Street Journal Prime + 2.00%. Mercury and Brex are startup banking products. Not really built for this. Pipe and Capchase underwrite against your MRR which works for SaaS, but it is expensive money and should only be a bridge, not your primary working capital strategy. One more option worth knowing about. I had a deal in medical transportation where the buyer could not get enough working capital built into the loan. They ended up using an AR factoring company to get cash flowing into the business faster. Not ideal long term, but it solved the immediate problem. For a B2B SaaS business with recurring revenue, something like this could work as a short term tool if you end up short. Bottom line, talk to your lender before you close and get this handled on the front end. It is 10x harder on the back end. We have a lot experience financing various software companies via the SBA. If you ever need help reviewing a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!
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Reply by an intermediary
from University of Washington in Chicago, IL, USA
Are you funding the acquisition via SBA? If so the lending back will give you a working capital loan. It will be same interest rate as SBA loan. The only issue is it’s not a LOC so you are paying P&I on it from day one For our online businesses, we have a line of credit through a local bank and also Chase. But these take at least 2 years of tax return history to get. So it won’t happen on new acquisitions. Our LOCs are 8.75% and another at 10%. If the SaaS is using Stripe, you can get a loan from Stripe. It’s ridiculous interest rates like 20%+. Payback is automatic from Stripe revenue that comes in.
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