A disbursement is a payment to an individual or entity from a private or public fund. A disbursement may also be a payment made on behalf of a client to a third party. It may be money paid into a business' operating budget, the delivery of a loan amount to a borrower, or adividend ...
The end result is that more interest is earned on the funds, since they do not remain idle in an account where they earn little to nothing. The concept of controlled disbursement makes it possible to take advantage of the float time that exists within most types of financial transactions. ...
That which one is under obligation to pay, or for which one is liable. Expense To write off as an expense. Liability The state of being legally obliged and responsible Expense A spending or consuming, often a disbursement of funds. She went to great expense to ensure her children would get...
In general, disbursement fraud occurs when a payment is inappropriately made to a person or business. The person in charge of approving or scheduling the disbursement may use company funds to pay for their bills or have a disbursement routed to a bank account they control. It can work in...
Vendors, employees and contractors all rely on efficient and accurate information and money transfers. Sometimes, this means disbursement of funds; other times, it involves a payment. Knowing which is appropriate leads to better business relationships with everyone you’re sending money to—and prevent...
What Is a Loan Drawdown? The term loan drawdown refers to the disbursement of funds from a lender to a borrower. Put simply, it's the act of borrowing money from a lender. The date when the money is disbursed by the lender is referred to as the drawdown date. For instance, a home ...
Disbursement Invoice A disbursement invoice is what a vendor, agent or representative presents to a company showing monies already spent on the company's behalf. The invoice qualifies as proof of the funds expended and typically lists the items or services the vendor purchased and their associated...
Funds Disbursement:Funds are officially transferred, providing the business with the capital. Regular reports and communication to investors are expected. Step 6 Post-Investment Relationship Regular Updates:Investors will desire progress and financial reports. Transparency is crucial for maintaining long-term...
When this is the case, any administrative costs associated with the management of the disbursement process are also paid out of the fund balance. The common fund is different from some other types of partnerships in that each participant shoulders an equal amount of the expense incurred by ...
Advance - A drawdown or disbursement of funds according to the terms of an existing loan agreement. Advance Rate - The maximum percentage that the lender will lend against a type of collateral. Aging (Schedule) - A periodic report listing a borrower’s accounts receivable or payable balances, ...