How much airtime float does a small retailer need?
Your float needs to cover sales until the next deposit clears. If funding takes two days, start with what you normally sell over two comparable days and add an approved reserve. Check weekends and month-end separately. Cash sitting in the airtime account is cash the shop can’t use elsewhere.
Two-day planning illustration
| Input | Hypothetical value |
|---|---|
| Average daily confirmed sales | R600 |
| Replenishment lead time | 2 days |
| Base requirement | R1,200 |
| Approved buffer | R300 |
| Planning balance | R1,500 |
By Freepaid · Published
Calculate a base requirement
The simple starting point is confirmed average daily sales multiplied by replenishment lead time. In this hypothetical case, R600 × 2 days = R1,200. Add the stated R300 buffer to reach R1,500. If most sales come on weekends or at month-end, calculate those periods from comparable days instead of using the same average throughout the month.
Replenishment time should come from the actual process and supplier terms, including when funding is initiated and when it becomes usable. Do not rely on an informal estimate if delays would stop sales. Record the source and date for the lead-time assumption.
Which days use the most float?
Collect completed sales by day, product and outlet. Separate promotions, closures, one-off demand and unresolved transactions. Look for the highest ordinary demand during the period that funding must cover, not just an overall monthly average. If different products use different balances or have separate availability, forecast them separately.
For a new counter with little history, set a conservative approved starting amount and review it frequently against actual sales. Do not use customer orders that have not been approved or funded as evidence of recurring demand.
Set minimum and maximum controls
A minimum threshold should trigger replenishment before expected demand exhausts the balance. A maximum balance requires additional approval when the proposed top-up would exceed it. Assign one person to reconcile funding, orders, supplier balance and cash receipts.
Do not top up while an earlier funding transfer is unconfirmed. Keep the proof of payment and record when the supplier shows the funds as available. Review thresholds after interruptions, term changes or demand shifts. A shop with multiple tills should use one controlled account balance and clear till-level attribution rather than guessing each cashier’s share.
Keep float separate from sales
Record deposits and supplier balance separately from completed customer sales. At close, match orders to receipts and check the remaining supplier balance. Pending transactions and adjustments need their own status until resolved. A balance calculation is not proof that each order completed.
Review float use weekly at launch, then set a suitable schedule based on activity and exceptions. For business counter options, see Freepaid point-of-sale airtime. Confirm current account, funding and product terms directly.
Recalculate after a funding delay
If a transfer is approved on Friday but becomes usable only on Monday, measure that elapsed time against actual weekend demand. Record the balances before and after the transfer rather than treating the payment date as the replenishment date. If payment clearance is the source of recurring shortages, adjust the approval schedule as well as the float.