Optimize Cash Management with Controlled Disbursements

A controlled disbursement account (CDA) is type of checking account that allows a business to determine which checks will post to their bank account each business day, depending on funding needs. It helps control payments and cash flow, so a business can avoid overdrafts, manage investments, and pay down debt  — all while benefiting as much as possible from earned interest. 

Whether your business is a small startup or a large corporation, effective payment management is key to financial stability. At TowneBank, we understand the crucial role of effective cash management. Our team of Treasury Advisors are here to provide personalized support, ensuring you get the most from our services.

Get Started  Find a Treasury Advisor

Decoding Controlled Disbursements

A controlled disbursement, or a CDA, is a financial strategy that allows businesses to manage their cash flow by controlling outgoing payments. This process centralizes all payments into a controlled disbursement account, creating an efficient system for payment management. Businesses are required to inform their bank, the Bank of CDA, about upcoming payments. The bank then estimates the necessary funds and transfers them into the disbursement account. This system offers multiple advantages, including improved cash flow management, reduced risk of fraud, and potential cost savings through the negotiation of better banking terms.

  • Maximize Returns on Cash

  • Optimize Cash Flow

  • Awareness of Daily Cash Position

Let's Connect!

Contact a local treasury advisor to see how Controlled Disbursements can work for your business. Just let us know a time to contact you and we will be in touch soon. 

We use your zip code to match your request with a local banker in your area.
Help us to provide you with exquisite service and include any additional information about what you're looking for.

Controlled Disbursements FAQs

  • A controlled disbursement account (CDA) is type of checking account that allows a business to determine which checks will post to their bank account each business day, depending on funding needs. It helps control payments and cash flow, so a business can avoid overdrafts, manage investments, and pay down debt — all while benefiting as much as possible from earned interest.

    Contact your local treasury advisor to learn how your business can benefit from a controlled disbursement account.
  • There are several benefits a controlled disbursement account can offer such as:
    • improved efficiency with cash flow, working capital, and budget forecasting
    • more savings by maximizing investment income and reducing borrowing costs
    • better security by better preventing fraudulent activity.
    We'd love the opportunity to discuss further how your business can benefit from a controlled disbursement account. Find your local treasury advisor to get started today.
  • With a controlled disbursement account from TowneBank, a business will receive an early morning report listing all the checks that will be cleared that day. This report helps the business to accurately assess the amount of cash required to cover its daily expenses. TowneBank will transfer the required funds from the company's concentration account to its disbursement account, ensuring that the business always has sufficient cash to meet its expenses.

    To learn more about this process, contact your local treasury advisor.
  • A zero balance account (ZBA) is a checking account specifically designed to maintain a balance of zero at the end of each day. ZBAs are particularly useful for businesses with multiple subsidiaries or locations that need to streamline their cash flow management.
    A controlled disbursement account (CDA) is a type of checking account that enables a business to decide which checks will be posted to their bank account each business day based on their funding needs. CDAs are most suitable for businesses that deal with high volumes of checks and want to prevent overdrafts and minimize the risk of fraud.

    Contact your local treasury advisor to discuss which type of business checking accounts would benefit you the most.
  • Choosing the best type of concentration account depends on your company's needs and objectives. For example, if you want to earn interest on your business's extra cash, sweep accounts may be the best choice. On the other hand, if you'd like more control over your cash position, controlled disbursement accounts may be more suitable. The best option will ultimately depend on your business's specific circumstances and goals.

    Our trusted treasury advisors are happy to help you find the best concentration account. Contact our team today to get started.


Insights & Perspectives