Remittance Float

A A A

DEFINITION

The time it takes for a payment to be sent from the remitter (payer) to the recipient and become liquid again. This term applies to all forms of payment, whether it's a check sent through the mail, an electronic payment or a wire transfer. Most of the remittance float is made up of the transit or mail time.

Sometimes referred to as a "mail float".




INVESTOPEDIA EXPLAINS

Remittance is another word for a debt owed. Managing the remittance float is a major treasury concern for both small and large businesses; depending on the type of business and the billing schedules there may be large amounts of cash that flow into the business at certain times of the year. Because sizable interest can be earned on these receivables, companies are always looking at ways to limit the remittance float and speed up the time it takes to receive payments, clear checks and invest or use the proceeds.





RELATED TERMS
  1. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, that enables ...
  2. Remittance Letter

    A document sent by a customer, which is often a financial institution or other ...
  3. Controlled Disbursement

    A technique commonly employed in corporate cash management. Controlled disbursement ...
  4. Delayed Disbursement

    A cash management technique that involves a company paying vendors and/or other ...
  5. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  6. Liquidity

    1. The degree to which an asset or security can be bought or sold in the market ...
  7. Remittance

    The process of sending money to remove an obligation. This is most often done ...
  8. Wire Transfer

    An electronic transfer of funds across a network administered by hundreds of ...
  9. Subprime Meltdown

    The sharp increase in high-risk mortgages that went into default beginning in ...
  10. Event Risk

    1. The risk due to unforeseen events partaken by or associated with a company. ...
Related Articles
  1. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  2. Downsize Your Home To Downsize Expenses
    Retirement

    Downsize Your Home To Downsize Expenses

  3. What Is Market Efficiency?
    Active Trading

    What Is Market Efficiency?

  4. Getting On The Right Side Of The P/E ...
    Fundamental Analysis

    Getting On The Right Side Of The P/E ...

  5. Herding Tendencies Among Analysts
    Investing Basics

    Herding Tendencies Among Analysts

  6. Understanding Leveraged Buyouts
    Fundamental Analysis

    Understanding Leveraged Buyouts

  7. How The Sarbanes-Oxley Era Affected ...
    Fundamental Analysis

    How The Sarbanes-Oxley Era Affected ...

  8. Where's The Market Headed Now?
    Fundamental Analysis

    Where's The Market Headed Now?

  9. ChartAdvisor for Aug. 8, 2014
    Chart Advisor

    ChartAdvisor for Aug. 8, 2014

  10. Does Higher Risk Really Lead To Higher ...
    Active Trading

    Does Higher Risk Really Lead To Higher ...

comments powered by Disqus
Hot Definitions
  1. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
Trading Center