6 ms·
What does 'generate float' mean as a financial term?
by prolepunk 7y ago
What does 'generate float' mean as a financial term?
- sambroner 7y agoIt basically means "hold cash", so visa, stripe, insurance companies etc. all get cash from customers, hold it for a period of time, and distribute it to customers. Holding it for a period of time is "generating float." For many of these companies the float is a large multiple of the profit.