Business · official-source review · reviewed 2026-10-10
A business runs out of cash in the gap between what it pays and what it collects.
Turn customer terms, supplier terms, and monthly costs into the cash float the gap needs.
Anyone billing on terms while paying suppliers on shorter terms.
Use the source document or official route that applies to your situation. This guide does not contact another person or verify external information.
Write the days your customers actually take, not the days on the invoice.
Write the days your suppliers allow you. Use the shortest common term.
Add the costs that must be paid every month. Include payroll if you run it.
Keep the float figure in the operating account. Treat it as a floor, not spare cash.
Ask for deposits or shorter terms before you add credit. Each day cut reduces the float.
Customers pay at 45 days and suppliers are paid at 15 days, with $6,000.00 in monthly costs. The gap needs a $6,000.00 float.
Use your own source and details. The example is not a record about a real person or organization.
U.S. Small Business Administration · reviewed 2026-10-10
What this source supports: Clear invoice terms, late fee policies stated upfront, and polite reminders reduce late payment.
Source limit: Late fee rules vary by jurisdiction; state your terms in your client agreement.
These sources support the statements above. They do not show that every person needs this guide. They do not show a specific result.
This guide measures the gap from your own terms. It does not forecast sales or recommend credit.
Late fee rules vary by jurisdiction; state your terms in your client agreement.
Use current instructions from the responsible organization. This guide is a planning aid, not an official decision or a substitute for qualified advice.
Turn customer terms, supplier terms, and monthly costs into the cash float the gap needs.
This App measures the gap from the terms you enter. It does not forecast sales or recommend credit.
You enter every number yourself. The sources support the method and the limits. They do not produce a result for your specific case. Keep the original documents next to the sheet you build.
The App computes the worked example with your own numbers, in your browser.
APP 1
Turn customer terms, supplier terms, and monthly costs into the cash float the gap needs.
Free · no account · no upload
Open Cash-Gap Float CheckThe App runs in this browser. It does not send or save entries. Copy, download, or print only when you choose.
This guide uses short, direct instructions as an ASD-STE100-style writing target. It is not a formal certification.
Companion App: Cash-Gap Float Check. It runs in this browser and does not upload your entries.
This guide is edited for clarity and checked against the sources it links. It is not a substitute for official instructions or qualified advice. A linked source does not show that every person needs this guide.