Disbursement float

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Disbursement float

A decrease in book cash but no immediate change in bank cash, generated by checks written by the firm.

Disbursement Float

Money that a person or company has spent but that has not yet been taken out of one's bank account. A disbursement float occurs when a person or company writes a check; when the check is deposited, it usually takes a few days for the payment to clear. The disbursement float may be thought of as the difference between what is in one's bank account and what the bank shows to be in the account as the result of an uncleared check. See also: Net float, Collection float, Check hold.