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. Remote Disbursement

    A cash-management technique that some businesses use to increase ...
  2. Controlled Disbursement

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

    A cash management technique that involves a company paying vendors ...
  4. Concentration Bank

    A financial institution that is the primary bank of an organization, ...
  5. Paying Agent

    An agent who accepts payments from the issuer of a security and ...
  6. Dry Closing

    A type of real estate closing in which the entire closing requirements ...
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

    Understanding Cash Management

    Cash management is a broad term that applies to the collecting, managing and investing of cash.
  4. Investing

    Why Cash Management Is Key To Business Success

    Businesses need to generate a healthy cash flow to survive, but not hold too much so that inventory suffers or investment opportunities are missed.
  5. Investing

    Is the Equity Market Overly Concentrated?

    Explore the potential impact concentration could have on the valuations of leading companies.
  6. Investing

    Calculating Net Cash

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

    Understanding Cash and Cash Equivalents

    Cash and cash equivalents are items that are either physical currency or liquid investments that can be immediately converted into cash.
  8. Financial Advisor

    Portfolio Concentration: Why You Should Watch It

    Overconcentration in a specific position or sector can lead to disaster.
  9. Tech

    Cash Flow Is King: How to Keep it Running

    Why is cash flow so important, and what steps can a business take to improve it?
  10. Investing

    Operating Cash Flow: Better Than Net Income?

    Differences between accrual accounting and cash flows show why net income is easier to manipulate.
RELATED FAQS
  1. 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 >>
  2. How does bank reconciliation affect a cash control policy?

    Understand how the bank reconciliation process augments a company's cash controls and is an essential part of proper cash ... Read Answer >>
  3. 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 >>
  4. How can a creditor improve its Average Collection Period?

    Read about some of the ways that a business can improve its accounts receivable management practices to shorten its average ... 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