Liquidity management

Our cash management solutions let large companies and groups of companies get a clear overview of their financial assets and manage and forecast their needs for working capital more flexibly.
With our solutions you can reduce your credit needs, increase your interest income and reduce your interest expenses and transaction costs. You will have an overall picture of your group's activities and benefit from an intra-group credit market.

  • With a Group Account you can pool all the liquid assets of your group in one account. This solution allows fast and efficient internal lending between the companies in a group.
  • Zero Balancing is a service that pools all the liquidity within a company or a group of companies into one account at the end of each business day, leaving the balances of all other accounts at zero.
  • Sweeping is an automatic cash transfer service that pools all the account balances of your company or group of companies into one account, no matter which country they are located in.

Contact with us: CashManagement.Estonia@nordea.com

With our Group Account service you can manage your group's cash flow more flexibly and efficiently. A group account is a book account that pools all the liquid assets of the group.

You can pool current accounts in different currencies under your group account (multi-currency group). You can also create multi-level account structures to suit the needs of your company.

Who is a Group Account for?

  • Companies with several subsidiaries, or groups of companies.
  • Companies who have a number of different current accounts, for example where each department has its own account.

Why would a Group Account be right for you?

  • It reduces the group's credit needs. Our Group Account service lets you assign the available funds within the group to the group member who needs them most. This lets you reduce the total overdraft needed by the group to less than the total amount of credit needed by each group member separately.
  • You can increase your interest income. You can earn more interest on a consolidated balance by placing the group's funds into an overnight deposit for example. The positive and negative account balances of individual group members offset one another meaning you have a smaller overdraft to pay debit interest on.
  • You can reduce your transaction costs. There is no check on whether payments can be covered for intra-group transactions, and there is no service fee for them.
  • You get an overall picture of the group activities. The owner of a group account gets a better overview of all the group funds, making the central management of the group's cash flow more efficient. At the same time, the management of payments can be kept decentralised.

With a group account you can pool all the liquid assets of your group into one account. This solution allows for fast and efficient internal lending between the companies in the group.

The structure of a group account

 
Definitions for the service

  • Group Account – a bank account which is only accessed through transaction accounts and shows the financial position between the owner of the group account and the bank in its balance
  • Transaction Account – an account within the structure of the group account which is used for making payments. The balance of a transaction account shows the funds of the company within the group, not the financial position between the company and the bank.
  • Each company in the structure of the group account must have at least one transaction account within the structure of the group account. The balance of the transaction account and the payments made through it can be monitored over an electronic banking channel. There is no limit on the number of transaction accounts in the structure of the group account
  • Main Group Account – an informative account in a currency chosen by the owner of the group account, which shows the sum of the balances of the main accounts in this currency. The main group account is not a bank account and its balance does not reflect the financial position between the bank and the owner of the group account
  • Consolidated Account – an informative account that consolidates the balances of the linked transaction accounts in the same or different currencies. The consolidated account is not a bank account and its balance does not reflect the financial position between the bank and any other person

The credit limit of the group account is tied to the group account. If a transaction account has no funds for making a transaction, the owner of the main account may set an internal credit limit for the transaction account.

Coverage checks

If payments are made to parties outside the group, a check is made for whether there are sufficient funds on the group account.

  • It is also possible that a coverage check will be made first for the group account and then again for the subordinate account that is to be debited, to check the total balance and the intra-group credit limit
  • You can set different rules for checking different subordinate accounts

Intra-group transactions

The coverage is not checked for intra-group transactions and no service fees are charged.

The owner of the group account can set internal interest rates for all transaction accounts, thereby setting a price for internal credit (interest on a negative end-of-day balance of the transaction account) and a price for the positive balance of the transaction account (interest on a positive end-of-day balance of the transaction account).

  • The bank will generate monthly reports on the interest calculated for the transaction accounts. The interest is transferred to the transaction account of the owner of the group account
  • By agreement with the owner of the group account, the bank can transfer the interest for positive and negative balances from the parent company to the transaction accounts of other group members following the results of the report

If you consider joining the Group Account service, we recommend that you consult your legal and tax advisors in order to ensure compliance with laws and regulations while using the service.

Zero Balancing is a service that pools all liquidity within a company or a group of companies into one account – the main account – at the end of each day, leaving the balances of all the other accounts – the subordinate accounts – at zero.

Who is Zero Balancing for?

  • Companies with several subsidiaries, or groups of companies
  • Companies who have a number of different current accounts, for example where each department has its own account

Why would Zero Balancing be right for you?

  • You can reduce your credit needs. Through our Zero Balancing service you can assign the available funds on the main account to the subordinate account where they are needed the most.
  • You can increase your interest income. You can earn more interest on a consolidated balance of the main account, by placing the group's funds into an overnight deposit, for example.
  • You can reduce your interest costs. Pooling the positive balances of subordinate accounts into the main account reduces the end-of-day overdraft balance on the main account and thus the interest to be paid for it.
  • You will have an overall picture of the group activities. Zero Balancing lets you get an overview of the group's finances and centralise cash flow management while keeping the management of payments decentralised.

You can add an unlimited number of subordinate accounts that are linked to one main account to the Zero Balancing service. A separate structure is created for each participating currency.

  • All accounts related to the service are real accounts
  • The bank has a contract with each company participating in the service. All companies that are in the service are jointly and severally liable to the bank for any costs and debts that arise from use of the service


 

Definitions for the service

  • Main Account – a balancing account that pools the funds of subordinate accounts at the end of each banking day and that is used for covering the negative balances of subordinate accounts.
  • Subordinate Account – an account that is balanced and has its funds transferred to the main account at the end of each banking day; a negative balance on a subordinate account is covered by the funds on the main account so that the balance of the subordinate account is zero.
  • When joining the service, the owner of a subordinate account gives the owner of the main account permission to see the transactions of the subordinate account through electronic channels.
  • Subordinate accounts are ordinary current accounts and, like other bank account owners, the owner of a subordinate account has the right to receive account statements.
  • The accumulated funds belong to the owners of each subordinate account until they are transferred to the main account at the end of the banking day.
  • During a banking day the owner of the main account has no access to the funds on subordinate accounts other than the subordinate account of the owner of the main account.
  • Internal Limit – a daily limit set on a subordinate account by the owner of the main account. The owner of the subordinate account can use the funds on the main account up to this limit. The owner of the main account agrees to cover the negative balance of the subordinate account at the end of a banking day up to this limit. This is a limit set within the group and is optional.

Overdraft

Overdrafts are granted only to the owner of the main account. An end-of-day negative balance on a subordinate account is covered from the funds on the main account.

At the beginning of a new banking day the opening balance of a subordinate account is always zero. The owner of the main account can set an internal limit for a subordinate account, so that payments can be made out of it. This limit is set within the group and does not reflect the financial position between the company and the bank.

Coverage checks

A coverage check is a check that the funds required for a transaction are available. It is carried out in two steps:

  1. First, the balance of the subordinate account is checked before a payment can be made. If it is positive, the payment is made.
  2. Second, if the balance of the subordinate account is positive but not by enough to cover the payment, a payment is made into the subordinate account up to the internal limit. The internal limit of the subordinate account will be checked first and then whether there are enough funds on the main account to cover the payment. If there are enough funds available on the main account within the internal limit to cover the payment, the payment is made and the corresponding amount is booked from the main account

Whatever the size of the internal limit, the owner of a subordinate account can never use more funds than are available on the main account.

Reporting
The account statements of the main and subordinate accounts are available through the electronic channels Nordea Multibank or Netbank on the morning of the next banking day.

Calculation of interest

As an additional service, the bank can monitor the lending activity between the companies if it is related to the group's participation in the Zero Balancing service.

  • The owner of the main account can set interest rates for the positive and negative balances of subordinate accounts.
  • The bank sends the owner of the main account monthly or quarterly interest reports, as agreed.
  • The bank calculates the interest payments according to the interest rates set by the owner of the main account and transfers the interest for a given period at the request of the owner of the main account.

If you are considering joining the Zero Balancing service, we recommend that you consult your legal and tax advisors in order to ensure compliance with laws and regulations while using the service.

Our Sweeping service is right for you if your company has several subsidiaries or bank accounts in a number of countries and you need to pool your funds into one account.

Sweeping is an automatic cash transfer service that pools all the account balances of your company or group of companies into one account, no matter which country they are located in.

Who is the Sweeping service for?

  • Companies with several subsidiaries, or groups of companies
  • Companies who have subsidiary accounts in a number of countries

Why would the Sweeping service be right for you?

  • All the financial assets of your group are pooled into one account
  • You can increase your interest income
  • You can reduce your need for external financing
  • It is easier to manage your funds
  • You can set different rules for managing subordinate accounts

Money is transferred to the consolidated account from the subordinate accounts that are linked to your consolidated account at agreed intervals (sweeping). At the same time, any negative balances on subordinate accounts are covered by an automatic transfer from the consolidated account to the subordinate accounts that need it (topping).

Automatic cash transfers:

How does it work?
All accounts, whether subordinate or consolidated, must be in the same currency. With the Sweeping service you can set different rules for managing the balances of subordinate accounts.

Settings for managing the balance of a subordinate account:

  • You can set a fixed amount that is transferred regularly from the subordinate account to the consolidated account
  • You can set a balance that you wish to keep on the subordinate account
  • You can set a minimum or maximum balance that should be kept on the subordinate account

Settings for the frequency of transfers:

  • Every day
  • Once a week
  • Once a month on a fixed date
  • At the end of a month

Settings for the time of transfers:

  • 8.00
  • 13.00
  • 15.30

Pooling of financial assets
The service enables you to pool your company's money into one account. This makes it easier for you to monitor your company's cash flow.

Interest
With the Sweeping service you can increase your interest income because all your liquid assets are pooled into one account.

Financing
You can reduce your need for external financing as the negative balances of subordinate accounts are covered from the consolidated account.

Administration
You can simplify the administration of your company as you do not have to monitor the balances of the subordinate accounts. If the fixed amount is available, the transfer will be made automatically.

Client-specific reference numbers
You can choose a different reference number for each sweeping transaction. You can see the reference number on the account statement or in the ERP system.

Account information
You can get information on the transactions and account balances through the electronic channels of Nordea Bank.

As the Sweeping service enables you to provide intra-group credit, you need to consider the legal and tax implications.
Each country has different legal provisions and laws. Before opting for the Sweeping service you should familiarise yourself with the regulations.

CASH MANAGEMENT SERVICES
Group Account
Group account registration (per Group account) 100 €
Fee for group account service per transaction account 20 €
Monthly fee for internal interest calculation (per Group account) 7 €
Changes in to the group account structure or any other change in agreement 26 €
Zero Balance Group account
Zero Balance Group account registration (per ZB structure) 100 €
Monthly fee for Zero Balance Group account service (for each account) 20 €
Changes in agreement 26 €
Automatized money sweeping/topping service between Nordea Banks accounts
Registration 50 €

Monthly service fee

  • payment frequency: daily
  • payment frequency: weekly
  • payment frequency: monthly

 

  • 50 €
  • 25 €
  • 10 €
Fee for one payment According to payments price lists
Automatized money sweeping/topping service to outside Nordea Banks
Registration 70 €
Monthly service fee (payment frequency: monthly) 70 €
Zero balancing transaction between current accounts
Monthly fee per account pair (payment frequency: daily) 20 €

Nordea Multibank
First registration and installation at the client 25 €
Monthly maintenance fee 15 €
Monthly additional maintenance fee for every next company of the group 7.50 €
Additional consultation at customer's request and at customer’s premises 20 € /hour + travel costs
Payments in Multibank/Corporate Netbank 1
Domestic euro payment to Estonia and EU/EEA member states 25 €
Express international payment 3 15 €
Express international payment in full to beneficiary 2,3 7.50 €
Additional consultation at customer's request and at customer’s premises 20 € /hour + travel costs

1 Other payments according to Payments price list
2 Remitter (OUR) – the Customer as the remitter shall pay the fee set by the Bank and such fee shall cover the fees set by all other banks involved in the process of execution of payment. However, the Bank shall not be held liable if during the process of execution of payment no fees of other banks are withheld or the recipient does not receive the payment amount in full due to other reasons beyond the Bank's control. Payments in EUR or EU / EEA member states currencies are allowed if payment is with currency conversion. 
3 Requires an agreement.

Web Service channel
Initial registration and connection 50 €
Amendments in Web services channel agreement 15 €
Monthly fee (payments + account information) 50 €
Monthly fee (account information) 25 €
Plug&Play 50 €
File-transfer services
SWIFT message MT101
Service activation (when MT 101 is sent to another Nordea branch) Free
Service activation (when MT 101 is sent to other banks) 15 €
Using MT101 service (when MT 101 is sent to another Nordea branch) 15 € per month
Payments according to payments price list
Current account information (MT940, MT941, MT942)
Sending account information to other banks via SWIFT (MT940, MT941, MT942) to Nordea units Free
Sending account information to other banks via SWIFT (MT 940, MT941, MT942) to other banks 13 €
Using MT940, MT941, MT942 service (to other banks via SWIFT MT940, MT941, MT942 to Nordea units 13 € per month
Receiving of account information
Opening the service, when account information is received from Nordea units Free
Account information via SWIFT (MT940, MT941, MT942) from Nordea units Free
Account information sent via SWIFT (MT 940, MT941, MT942) from other banks 13 € per month
Current account information (ISO 20022 XML format camt.052, camt.053)
Registration 25 €
Monthly fee for customer 25 €