Zero Balancing
Zero Balancing is a local cash pool service that daily concentrates all liquidity within a company, or within a group of companies, into one account.
The balances of the sub-accounts are transferred to the top account at the end of each business day with original value days. The top account will therefore hold the overall net cash position of the company or group of companies
Who will benefit from Zero Balancing?
- Companies, that have several subsidiaries e.g groups of companies.
- Companies that have several current accounts (separate account for each department for example)
Benefits for customer:
- Reduces your need for external financing - Zero Balancing allows for directing intra-group available assets to the member of the group that needs them the most at the moment. The overdraft that the group needs is smaller than the total amount of the necessary overdraft of single members of the group.
- Improves your net interest - On the consolidated balance it is possible to earn more interest, for example, by placing some assets on the overnight deposit. In case of the group account the positive and negative balances of the members of the group balance each other and the amount to which the overdraft interest rate is applied is smaller.
- Gives you a total overview of the group`s liquidity - The customer can get an overview of the assets of the entire group, which makes central financial management of the group more efficient.
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Additional information:
Contact us if you want more information or have questions about Zero Balancing.
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