Income processing - contractual income definition



Definition of Income processing - contractual income
This is a cash management tool: dividends and interest payments are applied to the client's cash account on the due payment date (or, for some markets where inefficiencies cannot be overcome to allow earlier collection of dividends and/or interest, according to a pre-determined schedule of pay-date plus n days - eg. PD+2 - with the value of n varying according to the market) in place of when the income is actually received. This can greatly assist clients in managing available funds.


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