Local delivery Growth Funding Gap
Funding gap = extra monthly sales × upfront cost × collection delay − allocated cash
Gather completed route logs, fuel receipts and delivery records. Include driver hours, vehicle cost, and route density. The starting figures are examples. Replace them with your own records.
Formula and worked example
Funding gap = extra monthly sales × upfront cost × collection delay − allocated cash
| Input | Example |
|---|---|
| Additional monthly sales | 30 |
| Upfront cash cost per sale | 200 |
| Months until collection | 2 |
| Cash allocated to growth | 5,000 |
| Calculated result | 7,000 |
Choose reliable inputs
Compare route time, vehicle cost, delivery density and collection timing. For this local delivery calculation, use completed route logs, fuel receipts and delivery records and a consistent definition of one delivery.
- Driver hours: include the portion belonging to this delivery or reporting period, and record where the value came from.
- Vehicle cost: include the portion belonging to this delivery or reporting period, and record where the value came from.
- Route density: include the portion belonging to this delivery or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Can higher sales increase the cash gap?
Yes, when delivery costs are paid before customers settle. More sales can consume more working cash before collections catch up.
Assumes a steady additional volume and identical costs and delays; capacity investment is excluded.
What if this input changes?
If additional monthly sales rises by 10%, this example changes by 1,200 . This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.