Collection float

Cash management

The time interval between a payer (or payor) making a payment and the beneficiary receiving value.

Collection float results in an opportunity cost or loss to the person collecting.

Depending on the payment instrument, collection float may include:

• Transit float
• Processing float
• Clearing float

See also

• Clearing float
• Collection
• Disbursement float
• Float
• Opportunity cost
• Processing float
• Transit float