Delayed Disbursement


DEFINITION of 'Delayed Disbursement'

A cash management technique that involves a company paying vendors and/or other creditors by checks drawn on banks located in remote areas. Commercial banks will typically delay the availability of funds to the depositor of such checks for up to five days as they await payment from the paying bank.

BREAKING DOWN 'Delayed Disbursement'

Companies use this technique as a way to maximize disbursement float, a term that describes a decrease in book cash while delaying a change in bank cash.

  1. Remittance

    The term most commonly refers to money being sent via mail or ...
  2. Cash

    Legal tender or coins that can be used to exchange goods, debt ...
  3. Float

    Money in the banking system that is briefly counted twice due ...
  4. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, ...
  5. Controlled Disbursement

    A technique commonly employed in corporate cash management. Controlled ...
  6. Checking Account

    A transactional deposit account held at a financial institution ...
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