Cash pooling is an effective means of managing intragroup liquidity by consolidating funds in a single master account, and of financing all group accounts to back payments by all pool participants.
- Quick and efficient automated distribution of cash flows within the group
- Reduced financial costs (including the cost and size of external borrowings)
- Automated analysis of the viability of debit transactions
- Automated generation of payment documents and transfers.
Notional pooling allows for the efficient management of interest income combined with lower loan interest expenses.
- Higher interest rate based on the aggregate balance of pooled accounts
- Ability to keep funds available for operational management (funds are not transferred to the bank’s deposit accounts)
- Automatic daily calculation of liquidity positions for the whole group of companies
- Lower loan interest expenses due to partial compensation of interest.