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Disbursement Float
The interval between the issuance of a check and the actual deduction of the amount from the issuer's account.
Lockbox System
A service provided by banks to companies for the collection of payments from customers, whereby payments are sent to a special post office box instead of to the company.
Cash Concentration Account
A bank account used by companies to consolidate and manage cash from multiple locations or accounts, improving liquidity management.
Collection Float
The time delay between when a check is written and when it is actually deducted from the payer's account, impacting the receiver's cash flow.
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