Cash Pooling: easier subsidiary financing and lower costs
Cash Pooling is an efficient method for businesses to manage their cash flows and enhance liquidity. Corporate groups can consolidate individual company accounts into one without actual cash movement. Increasing numbers of our clients are opting for this service, including the material handling equipment dealer Alwark.
"One of the key benefits of the service is the ability to borrow from a central location and then distribute funds to group companies through internal limits. An overdraft agreement is attached to the main account and the overall credit limit. Internally set interest rates are calculated by the bank and transferred to the main company account monthly," shared Dalius Strazdas, CFO of Alwark, with the Verslo Zinios portal.
"A specialised program is dedicated to the management of group funds, allowing real-time review of the overall position of the group and its companies’ accounts at any time. Various reports are also provided, aiding in the efficient management of capital and funds," says Rimvydas Morkunas, Cash Management Solutions Analyst for the Baltic States.
The cash pooling service is actively used by large and leading mid-sized companies in the energy, manufacturing, transport, and other sectors.
For more detailed information about the service and its benefits, we invite you to read the article available in Lithuanian here.
