How much cash should a courier business keep?

A courier business pays drivers weekly and fuels vans every day. Its business clients often pay monthly invoices on 30 to 45 day terms. Fuel prices and vehicle repairs move costs week to week. The faster it grows, the more cash it carries for its clients.

Payroll per run, all-in $ How often you run payroll Fixed bills per month (rent, loans, insurance, software) $ Days your customers take to pay, on average days Cash in the bank today $

Minimum to keep

Two payroll runs plus one month of fixed bills

Comfortable level

Covers costs while you wait for customers to pay, plus one month

Weeks your cash covers

If no customer paid you

The starting numbers are an example. Replace them with yours.

How cash moves in a courier business

Driver pay and fuel go out every week. Client payments come monthly.
Vehicle repairs and replacements arrive in lumps.
Fuel price rises hit cost before you can pass them on.
Contract drivers may be paid even faster than employees.

Why the usual rule falls short

Two courier companies each bill $100,000 a month. One bills weekly with 15-day terms. The other bills monthly on 45-day terms. The second carries about six weeks of driver pay and fuel for its clients.

How the calculator works

Result	Formula
Minimum to keep	2 × payroll per run + 1 month of fixed bills
Comfortable level	Monthly costs × (days to collect ÷ 30 + 1)
Weeks your cash covers	Cash ÷ weekly costs

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Also for courier owners, see the courier business monthly financial report.