How much cash should an event rental company keep?

An event rental company rents tents, tables, chairs and linens for weddings and events. Customers pay a deposit when they book and the balance before the event. Most of the year's revenue lands in a few months. The inventory, trucks and warehouse cost money all year.

Payroll per run, all-in $ How often you run payroll Fixed bills per month (rent, loans, insurance, software) $ Days your customers take to pay, on average days Cash in the bank today $

Minimum to keep

Two payroll runs plus one month of fixed bills

Comfortable level

Covers costs while you wait for customers to pay, plus one month

Weeks your cash covers

If no customer paid you

The starting numbers are an example. Replace them with yours.

How cash moves in an event rental company

Deposits arrive months ahead. They belong to events not yet delivered.
Peak season brings long weeks of labor and fuel, all at once.
Damaged or lost items cut into each event's margin.
New inventory is a large upfront cost before it earns anything.

Why the usual rule falls short

Two rental companies each do $500,000 a year. One rents to wedding venues on contracts. The other rents to private parties booked a few weeks ahead. The first has deposits months in advance. The second sees cash only shortly before each event.

How the calculator works

Result	Formula
Minimum to keep	2 × payroll per run + 1 month of fixed bills
Comfortable level	Monthly costs × (days to collect ÷ 30 + 1)
Weeks your cash covers	Cash ÷ weekly costs

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Also for event rental owners, see the event rental company monthly financial report.