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Financial Terms | |
Collection float |
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Definition of Collection floatCollection floatThe negative float that is created between the time when you deposit a check in your account
Related Terms:Bank collection floatThe time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank. Automated Clearing House (ACH)A collection of 32 regional electronic interbank networks used to Net floatSum of disbursement float and collection float. Availability floatChecks deposited by a company that have not yet been cleared. availability floatChecks already deposited that have not yet been cleared. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total ![]() Clean FloatA flexible exchange rate system in which the government does not intervene. Collection DepartmentAn internal department within a company staffed by specialists in collecting past due accounts or accounts receivable. Collection fractionsThe percentage of a given month's sales collected during the month of sale and each Collection policyProcedures followed by a firm in attempting to collect accounts receivables. collection policyProcedures to collect and monitor receivables. Corporate processing floatThe time that elapses between receipt of payment from a customer and the Dirty floatA system of floating exchange rates in which the government occasionally intervenes to change Dirty FloatA flexible exchange rate system in which the government intervenes. Disbursement floatA decrease in book cash but no immediate change in bank cash, generated by checks FloatThe number of shares that are actively tradable in the market, excluding shares that are held by officers Floaterfloating rate bond. Floating ChargeCharge or assignment on a company's total assets as security for a loan on total assets without specifying specific assets. Floating exchange rateA country's decision to allow its currency value to freely change. The currency is not Floating Exchange RateSee flexible exchange rate. Floating Interest RateA rate that fluctuates with general market condition. Floating lienGeneral lien against a company's assets or against a particular class of assets. Floating-rate contractA guaranteed investment contract where the credit rating is tied to some variable Floating-rate note (FRN)Note whose interest payment varies with short-term interest rates. Floating-rate payerIn an interest rate swap, the counterparty who pays a rate based on a reference rate, Floating-rate preferredPreferred stock paying dividends that vary with short-term interest rates. floating-rate securitySecurity paying dividends or interest that vary with short-term interest rates. Floating supplyThe amount of securities believed to be available for immediate purchase, that is, in the Free floatAn exchange rate system characterized by the absence of government intervention. Also known as In-house processing floatRefers to the time it takes the receiver of a check to process the payment and Inverse floating rate noteA variable rate security whose coupon rate increases as a benchmark interest rate declines. Mail floatRefers to the part of the collection and disbursement process where checks are trapped in the postal system. Managed floatAlso known as "dirty" float, this is a system of floating exchange rates with central bank net floatDifference between payment float and availability float. Payment floatCompany-written checks that have not yet cleared. payment floatChecks written by a company that have not yet cleared. Positive floatSee:float. Risk of CollectionChance that a borrower or trade debtor will not repay an obligation as promised. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |