Disbursement

Disbursement is the act of paying out or disbursing money. Examples of disbursements include money paid out to run a business, cash expenditures, dividend payments, or the amounts that a lawyer might have to pay out on a person’s behalf in connection with a transaction. Disbursing money is part of cash flow. If cash flow is negative, meaning that disbursements are higher than revenues, it can be an early warning of potential insolvency.