How much working capital do I need to begin importing?

A safe rule of thumb is 2.5x to 3x your Initial P.O. Value. If you are placing a $10,000 factory order, you need an additional $5,000 for freight and duties, plus another $10,000 to launch marketing and place your *second* order before the first order even finishes selling.

💳 Payment & Finance

Working Capital Calculator Import Business

Use our working capital calculator import business to calculate the working capital needed to run a China import business. Factor in lead times, payment terms, and inventory requirements.

Updated: 2026-04-13

Planning Reference

Rates Last Reviewed April 2026

Reference Basis

Based on typical bank transfer fees, published LC fee schedules, and benchmark FX spread data.

Planning Note

Bank fees and FX rates change daily. Confirm actual charges with your bank or payment provider before transacting.

Secondary opportunity

working capital calculator import business
High SERP difficulty

Monthly Revenue USD

COGS as % of Revenue % Cost of goods sold as percentage of revenue.

Production Lead Time days Days from order placement to goods ready at factory.

Transit Time (China to warehouse) days Days from factory to your warehouse. Sea: 30–45 days. Air: 5–10 days.

Supplier Payment Terms days Days of credit your supplier gives you. Most China suppliers require payment before or at shipment (0 days credit). If you have Net 30 terms, enter 30.

Customer Payment Terms days Days until your customers pay you. For Amazon FBA/D2C this is typically 0–14 days. For wholesale B2B it may be 30–60 days.

Funding the Cash Cycle Gap

The harsh reality of importing from China is the "Cash Conversion Cycle." You pay a 30% deposit on Day 1. The goods finish production on Day 30 (you pay 70%). The goods take 30 days to ship. You finally start selling on Day 60. Amazon holds your payout for 14 days. You don't see your cash return until Day 75+. Model this gap to avoid bankruptcy by growth.

Tips for China Importers

Never pay 100% upfront to a new supplier. The global standard for China B2B is 30% deposit, 70% before shipment (or against Bill of Lading copy). Full upfront payment removes all your negotiating leverage.
Use Alibaba Trade Assurance for first orders. It adds supplier accountability and dispute resolution at no extra cost to you. Only remove it once you have 3–5 successful orders with a supplier.
Factor FX risk into your cost model. CNY/USD rates can move 3–8% in a year. A 5% FX move on a $50,000 order is $2,500. Consider forward contracts or timing purchases around FX movements.
Calculate the true APR of your supplier payment terms. A 2% discount for early payment (e.g., 2/10 net 30) equates to ~36% APR. If your credit line costs less, take the discount every time.
Match your payment timing to your cash flow cycle. If you pay your supplier before the goods arrive and you have 30-day customer terms, you may be financing 75+ days of inventory. Model your cash conversion cycle.