You shipped ₹4 lakh of COD orders last month — where's the cash? Sitting in courier remittance queues, T+2 to T+7 days behind delivery, funding someone else's working capital. At any volume, COD float is a hidden financing cost that deserves a number.
The float math
400 COD orders/month at ₹700 average = ₹2.8 lakh. At T+7 remittance, roughly a week's worth — ~₹65,000 — is always in transit. That's inventory, ad spend or payroll you're lending the courier at 0%. Faster remittance isn't convenience; it's your cash back sooner.
Remittance speed is a rate
A carrier at T+2 charging ₹5 more per order beats T+7 at the same volume — the float saving dwarfs the freight delta. When comparing carriers, remittance cycle belongs on the same row as the freight rate.
The compounding problem
Growth makes it worse: double your orders, double the float. Sellers hitting ₹10 lakh/month COD find ₹2.3 lakh permanently parked in remittance cycles — discoverable usually when payroll is due.
The prepaid fix
Every COD→prepaid conversion releases the float entirely — the ₹30 incentive that converts a COD order is also a cash-flow instrument. Prepaid revenue lands same-day; COD arrives a week later minus fees.
Pakka Parcel automates exactly this — the pipeline from order to AWB without the manual steps.
See how →The playbook
Calculate your live float
Avg COD order value × orders ÷ 30 × remittance days.
Price remittance into carrier choice
T+2 vs T+7 is a rate comparison, not a preference.
Push prepaid conversion
Every converted order releases its float.
Watch float vs payroll
The float is invisible until it isn't — model it monthly.
