Treasury Management: Notional Cash Pooling and Working Capital Optimization for Corporate Groups

Eliminating Idle Cash Inefficiencies

In a large corporate conglomerate, it is common to have Subsidiary A borrowing funds from a commercial bank at 9.5% interest to cover payroll, while Subsidiary B holds $5 Million in an idle savings account earning 3.5%. This creates unnecessary borrowing costs for the parent company.

Notional Cash Pooling & Treasury Oversight

Centralized treasury systems calculate total net cash across all corporate bank accounts daily. By executing automated inter-company sweep transfers or maintaining notional liquidity pools, groups minimize external debt interest and optimize working capital utilization.

Gain total liquidity control with Relaso Enterprise Multi-Entity Treasury Suite.