Cash pool

Cash management approach targeted at optimising interest results within a group of companies or in the accounts of a multi-branch company if financial management at the individual units need to maintain several current accounts or sub-accounts. This is usually realised through an agreement covering the transfer of all balances of payment transaction accounts of group companies with banks to a central account at the parent company. An internal payment transaction account is set up for each company for settling payment flows within the group. Without the need to transfer funds it is possible to look for zero balancing.