Large corporates

  1. Large Corporates

Products & Services

Advantages

  • The overall financial result improves because the margin between the debit interest and the credit interest is cancelled out on the cleared balances
  • The cost of pooling the balances of all the sub-accounts is usually lower than the total costs of all the separate, single transfers
  • Offsetting debit balances reduces the level of indebtedness recorded in the group’s balance sheet
  • Management is simplified, thanks to:
    • Clearer net balance
    • Computerisation of numerous individual transfers, which saves time
    • Computerised reporting providing details of each individual target-balancing transfer
  • Target balancing does, however, imply a cost for managing the cash pooling-process:
    • Booking all intra-company entries
    • Calculating and booking the interest on intracompany loans generated by targetbalancing
  • Finally, target balancing reduces the autonomy of sub-account management

Contact

  • Transaction Banking
    Head of Sales, Cash & Liquidity Management.
    Roemer Paquay
    +31 10 401 6776