When a buyer pays cash at the door, that money sits with the courier before it reaches your bank account. The gap between delivery and payout is your remittance cycle, and it decides how much working capital you need.
The stages
- Delivery. The rider collects cash and closes the shipment.
- Reconciliation. The courier matches collected cash against delivered AWBs.
- Payout. The settled amount is transferred, usually in a weekly or fixed-day batch.
- Adjustments. Freight, COD handling fees, and any RTO charges are netted off.
What to check before you sign up
- When the clock starts. Some cycles count from delivery date, others from the reconciliation date.
- The payout day. A "fast" cycle with one payout window per week can be slower in practice than a longer cycle with daily batches.
- Deductions. Understand what is netted off before the transfer, not after.
- Failed or disputed COD. Ask how long a disputed collection stays unpaid.
Why it matters more than the freight rate
If you sell 70% COD, a longer cycle ties up a meaningful share of monthly revenue. That is capital you cannot spend on inventory or ads.
At RoutikQ the COD remittance cycle is set by your plan and agreed with our team, so it matches your cash-flow needs rather than a one-size-fits-all schedule.