DEFINITION of 'Cash Concentration And Disbursement (CCD)'

A type of electronic payment used to transfer funds between remote locations and so-called concentration (i.e., collection) accounts. CCD is also used between businesses. Cash Concentration and Disbursement accounts are tools used for cash management that seperate funds collection and disbursement. Transfers are cleared overnight through the Automated Clearing House (ACH) system.

BREAKING DOWN 'Cash Concentration And Disbursement (CCD)'

Cash concentration and disbursement represent cash management techniques that improve the flow of cash, reduce excess balances and increase interest earned. Cash concentration collects all available funds in a single account, while disbursement is controlled so that cash can be fully invested during the day and helps assess funding requirements for checks brought for payment.

RELATED TERMS
  1. Disbursement

    The act of paying out or disbursing money. Disbursements can ...
  2. Remote Disbursement

    A cash-management technique that some businesses use to increase ...
  3. Cash Disbursement Journal

    A record kept by accountants to record all financial expenditures ...
  4. Delayed Disbursement

    A cash management technique that involves a company paying vendors ...
  5. Concentration Account

    A deposit account used to aggregate funds from several locations ...
  6. Concentration Bank

    A financial institution that is the primary bank of an organization, ...
Related Articles
  1. Financial Advisor

    Concentrated Funds: Here's What to Know

    Concentrated funds can help clients achieve returns with a smaller base of diversification than traditional funds. Here's what you should know about them.
  2. Investing

    Fundamental Case Study: Is Amazon's Cash Flow Actually Solid? (AMZN)

    Review Amazon's cash flow situation, including its free cash flow yield, operating cash flow from organic growth and cash flow from debt financing.
  3. Investing

    Cash: Can A Company Have Too Much?

    Cash is something companies love to have. But if they are not using it there could be problems.
  4. Investing

    Calculating Net Cash

    A company’s net cash is its total cash remaining after it subtracts all liabilities.
  5. Investing

    Operating Cash Flow: Better Than Net Income?

    Differences between accrual accounting and cash flows show why net income is easier to manipulate.
  6. Investing

    Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  7. Investing

    What Is A Cash Flow Statement?

    Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.
  8. Investing

    Evaluating A Statement Of Cash Flows

    The metrics for the Statement of Cash Flows is best viewed over time.
  9. Investing

    Cash Flow From Investing

    Cash flow analysis is a critical process for both companies and investors. Find out what you need to know about it.
  10. Investing

    Cash Flow Statement: Reviewing The Cash Flow From Operations

    A company's ability to consistently generate positive cash flows from its daily business operations is highly valued by investors. Operating cash flow can uncover a company's true profitability ...
RELATED FAQS
  1. What is the difference between drawdown and disbursement?

    Learn about some of the many definitions for financial drawdowns and disbursements, which represent transfers of funds between ... Read Answer >>
  2. How can an investor determine a company's annual return from looking at its financial ...

    Understand what a share premium account is, what funds go into the account and the specific purposes for which the funds ... Read Answer >>
  3. How does Sallie Mae disburse funds?

    Understand what Sallie Mae is and how it operates. Learn about the different ways in which Sallie Mae disburses funds to ... Read Answer >>
  4. How is cash flow affected by Average Collection Period?

    See how reducing a company's average collection period can help cash flow, and learn why collections practices are so important ... Read Answer >>
  5. Where do companies keep their cash?

    If you have ever looked over a company's balance sheet, you have no doubt noticed the first account under the current asset ... Read Answer >>
Trading Center