cheque-clearance

Vocabulary Word

Definition

'Cheque-clearance' is when a bank confirms if a cheque is valid and there's enough money in the account to pay it. It's like the bank making sure a written IOU can actually be paid.

Examples in Different Contexts

In retail business, 'cheque clearance' time affects how quickly businesses can access their revenue from sales made by cheque. A retail manager might note, 'We account for the cheque clearance period in our cash flow planning to manage our operational liquidity.'

Practice Scenarios

Business

Scenario:

We are planning to start the new project phase as soon as the funded cheque gets cleared by the bank.

Response:

Let's make sure the cheque-clearance happens without any delay to avoid any interruptions in the project phase.

Tech

Scenario:

Our new finance app has drastically reduced the time it takes for a user to have a cheque cleared.

Response:

With the cheque-clearance process being so simplified, users can have their financial transactions processed much faster.