Agreement Of Cash Pooling

Cash pooling is always subject to a corresponding contract between the participating companies. It contains the conditions under which company balances are deducted from the main account. It determines, for example, the amount of an interest rate within the cash pool paid by companies that have negative balances to companies with assets. When companies in a group invest in a cash pool, they collect their bank accounts and have them managed through a master account. Liquidity is thus pooled, allowing the companies concerned to make significant use of capital raising and capital investments. Cash pooling is possible both at the national level with subsidiaries within a country and across borders.