Controlled disbursement is a cash management technique usually employed in corporate businesses. With the help of this technique the flow of checks between the bank and the business are controlled properly. This is done in daily bases to avoid any confusion in the flow of cash or transactions being done through checks. This method is used to manage funds or investments in which bank is directly involved. With the help of controlled disbursement the amount of cash is regulated in a business that is used to pay debt or to perform certain monetary transactions. With the help of controlled disbursement a business tends to maximize its funds.
With the help of controlled disbursement the cash of a company is optimized used while its checks are in banking clearing process. Controlled disbursement can also play a vital role in increasing interest earnings as it can effectively control the flow and float of cash of that company. With controlled disbursement the company can invest the excessive money in market to maximize its profit. This technique can also help the business to maximize the cash that needs to be pay to the creditors by the business.
Controlled disbursement is completely opposite to the delayed disbursement in which the checks of the business are cleared from the remote locations that result in the extension of the check clearing time.