What "float management" actually means

Float = the gap between when you book revenue and when you have spendable cash. For AU dropshippers, float exists at multiple levels:

• Stripe reserve (5-15% held for 7 days) creates a 7-day floor on cash availability
• Stripe payout schedule (T+2) means today's revenue is spendable in 2 days
• Supplier payment terms (typically 0-30 days) determine when you must pay COGS
• Ad-spend timing (typically charged daily by Meta, weekly invoice settlement) creates ongoing outflow
• BAS quarter (every 90 days) creates a periodic large outflow

Float management is the operational discipline of timing cash inflows and outflows so you never run dry. At scale, it's the difference between sustainable growth and a cashflow death spiral.

When Stripe holds bite hardest

Three scenarios where Stripe reserves cause real damage:

Scenario 1: Sudden volume spike (50%+ growth in a month). Stripe sees the unusual pattern, increases reserve from 0-3% to 10-15%. Effective cash drops 7-12%. Common during BFCM, Black Friday, holiday seasons.

Scenario 2: Refund rate spike. Refund rate goes above 5% (often due to a quality issue with a new product). Stripe responds with reserve increase. Cash drops while you're also paying out refunds.

Scenario 3: Chargeback rate elevation. Chargeback rate creeps to 0.7-1.0%. Stripe takes notice. Reserve goes up. Account flagged for review.

The combined damage in all three scenarios: A$5,000-30,000 of working capital suddenly unavailable. Operators have paused ad spend, missed supplier payments, and even gone insolvent under these dynamics.

The float management toolkit

Five tools to manage float across these scenarios:

Tool 1: Voluntary cash reserve (defensive). Maintain 30-45 days of operating expenses in your business bank account, separate from operating capital. This is your buffer against Stripe holds and unexpected expenses. For a A$50k/month operator with A