What is Presentation Float?

Presentation float is the time between when a check is deposited and when the related funds are withdrawn from the payer's checking account. It is somewhat shorter than the availability float, which also includes the time required to make the funds available to the payee. This concept is useful for cash flow forecasting.

The concept of presentation float has become less critical to businesses, now that other forms of payment have gradually replaced a large part of the check payments being made around the world. Depending on the circumstances, it is now more likely that payments will be made through electronic transactions that do not require any presentation float delays.

Example of Presentation Float

A small business receives a check for $5,000 from a customer on March 1 and deposits it into its bank account the same day. However, the funds are not withdrawn from the customer’s checking account until March 4 due to processing delays between banks. The three-day gap between the deposit date (March 1) and the withdrawal date (March 4) represents the presentation float—the time during which the deposited check appears as a credit to the recipient’s account but the payer’s account has not yet been debited.