To understand cash management, one must understand FLOAT. Float is the most critical component in Cash Management. Learn about cash float in this article.
Float is the most critical component in Cash Management
Float is the time interval between the start and completion of each step in the cash management cycle.
The management of float is the management of cash.
Each cash management system is designed to improve the flow of cash by accelerating the collection of funds and extending the disbursement float.
There are two categories of Float:
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Disbursement Float is the time taken from payment creation to settlement. Collection float is the sum total of time taken by Payment Float; Mail Float; Processing Float and Availability Float. Learn more!
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Collection Float is the time spent to collect receivables. Collection float is the sum total of time taken by Invoice Float; Mail Float; Processing Float and Availability Float. Explore more!
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