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What is Cash Float?

Finance

In plain English: The gap between paying for ads and product today and the money actually landing in your bank days later. Growth eats cash before it pays you.

The gap between when you pay for ads (Meta charges your card every 24–48 hours or at billing threshold) and when Shopify pays you (net-14 to net-30 depending on account age). At $1,000/day in ad spend and a 30-day Shopify payout schedule, you need $30,000 in cash float to sustain operations without credit.

Why it matters: Many profitable operators run out of cash to scale because they don't account for the float gap. A business generating $10,000/month in profit can still stall if it can't fund the 30-day window between ad spend and revenue receipt.

Scaling rapidly using a debit card without any credit float. Business credit cards (Amex Blue Business Plus, Chase Ink) give you the billing cycle buffer needed to scale without hitting your cash wall.

Learn this in practice → Cash Flow Basics

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