Collection float
The negative float that is created between the time when you deposit a check in your account and the time when funds are made available. |
Similar financial terms
Collection fractionsThe percentage of a given month's sales collected during the month of sale and each month following the month of sale.
Collection policy
Procedures followed by a firm in attempting to collect accounts receivables.
Inverse floaters
Bonds whose coupon rate moves in the opposite direction from the change in interest rates.
Floater
Floating rate bond
Payment float
Company-written checks that have not yet cleared.
Net float
Sum of disbursement float and collection float.
Managed float
Also known as "dirty" float, this is a system of floating exchange rates with central bank intervention to reduce currency fluctuations.
Mail float
Refers to the part of the collection and disbursement process where checks are trapped in the postal system.
Corporate processing float
The time that elapses between receipt of payment from a customer and the depositing of the customer's check in the firm's bank account; the time required to process customer payments.
