Remittance Float

AAA

DEFINITION of 'Remittance Float'

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 Float'

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, ...
  2. Remittance Letter

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

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

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

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

    An electronic transfer of funds across a network administered ...
Related Articles
  1. Retirement

    Downsize Your Home To Downsize Expenses

    Learn how to cut your mortgage, tax, gas and utilities bills.
  2. Credit & Loans

    The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  3. Fundamental Analysis

    Cash Flow From Operating Activities

    Cash flow from operating activities is a section of the Statement of Cash Flows that is included in a company’s financial statements after the balance sheet and income statements.
  4. Fundamental Analysis

    What are the most common issues with Serial Correlation in stocks?

    Read about the concept of serial correlation in stock returns, and learn why market analysts are divided about the efficacy of trading based on stock patterns.
  5. Trading Strategies

    Under what circumstances is short selling advisable?

    Find out when short selling a stock is profitable and what an investor should keep in mind before deciding to pursue a short sale investment strategy.
  6. Bonds & Fixed Income

    How do I calculate yield to maturity of a zero coupon bond?

    Find out how to calculate the yield to maturity for a zero coupon bond, and see why this calculation is more simple than a bond with a coupon.
  7. Fundamental Analysis

    What does the term 'invisible hand' refer to in the economy?

    Discover and understand the concept of the "invisible hand" as explained by Adam Smith, considered the founder of modern economic theory.
  8. Fundamental Analysis

    At what level is the current account deficit considered excessive, in terms of percent?

    Take a deeper look at the variables that impact current account deficits, and learn why not all types of deficits have equal impacts on a nation's economy.
  9. Fundamental Analysis

    What is the difference between yield and rate of return?

    Read about the differences between yield and rate of return. See why many novice investors often struggle more with the concept of yield.
  10. Economics

    How A Limited Government Affects A Country's Finances

    Countries with limited governments have fewer laws about what individuals and businesses can and can’t do. What's the net result?

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center