Availability Float

Filed Under »
Dictionary Says

Definition of 'Availability Float'

The time period between when a deposit is made and when the funds become available in an account, specifically relating to check deposits. The availability float exists because banks have to process physical checks before releasing funds, meaning that the depositor has to wait before funds appears in a bank account. Companies can reduce an availability float by moving to an electronic payment system, as this reduces the reliance on a bank's processing speed on physical checks.

The difference between the availability float and a payment float is referred to as the net float.

Investopedia Says

Investopedia explains 'Availability Float'

For example, a printing company has $50,000 deposited in a bank and is owed $10,000 by one of its clients. The printing company cashes the $10,000 check and adjusts its ledgers to indicate that it has $60,000. Until the deposit is complete, the printing company's bank account will still show it has $50,000 available. The $10,000 is the availability float.

 
Search results for

'Availability Float'

  • In Small Business, Success Is Spelled With 5 "C"s

    http://www.investopedia.com/articles/pf/09/small-business-five-cs.asp
    ... Credit Credit availability and management is part of the small business owner's
    tool ... This reduces the payables float and pulls staff away from duties to handle ...

  • Trader's Corner: Finding The Magic Mix Of Fundamentals And ...

    http://www.investopedia.com/articles/trading/04/090904.asp
    ... of thumb is to avoid stocks with more than 5% of the float held short. ... But thanks
    to modern technology and the availability of some powerful programs and data ...

  • Short Interest: What It Tells Us

    http://www.investopedia.com/articles/01/082201.asp
    ... in smaller cap stocks, which have a very small float (supply), but ... interest; however,
    investors often overlook this ratio despite its widespread availability. ...

Related Articles

Bank Rates
Product Today Last Wk
$10K MMA 0.50% 0.51%
MMA 0.45% 0.46%
6 Month CD 0.46% 0.47%
1 Year CD 0.70% 0.75%
5 Year CD 1.46% 1.46%
1 Year Jumbo CD 0.66% 0.67%
Rate data provided by Bankrate
Product Today Last Wk
$30K HELOC 4.59% 4.60%
$30K Home Equity Loan 5.74% 5.77%
$50K Home Equity Loan 5.45% 5.50%
$50K HELOC 4.24% 4.24%
$100K Home Equity Loan 5.41% 5.46%
$100K HELOC 4.13% 4.13%
Rate data provided by Bankrate
Product Today Last Wk
30 Year Fixed 3.80% 3.80%
15 Year Fixed 3.09% 3.11%
1 Year ARM 3.54% 3.53%
30 Year Fixed Jumbo 4.38% 4.38%
5/1 ARM 2.65% 2.69%
3/1 ARM 2.69% 2.69%
Rate data provided by Bankrate
Product Today Last Wk
60 Month Used Car Loan 4.51% 4.51%
48 Month Used Car Loan 4.35% 4.35%
48 Month New Car Loan 3.24% 3.24%
36 Month Used Car Loan 4.34% 4.36%
36 Month New Car Loan 3.11% 3.13%
60 Month New Car Loan 3.35% 3.34%
Rate data provided by Bankrate
Partner Links