What are the benefits of cash pooling for corporate treasury management? Permjit Singh Treasury Consultant finds out
Here is a good overview of the issues and what to do, from Treasury consulting firm, Redbridge Group.
Why bother with cash pooling?
Knowing which countries and subsidiaries to include in the pooling structure, whether to adopt a hybrid pooling structure (zero balancing and notional pooling), the strengths and weaknesses of banks to be possibly included in the structure, and the legal, tax, accounting, and regulatory requirements of pooling cash cross-border and across legal entities, are major factors that determine the optimum structure used in practice.
Using the services of a Treasury Consultant who understands the market and keeps up with changes, can be a worthwhile investment not only for the time and cost saved but to ensure the treasury is adopting best practices and so providing the best service to the company and its subsidiaries across the globe.
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