CASH POOLING

The primary target of each cash pooling is the optimization and use of surplus funds of all companies in a group in order to reduce external debt and increase the available liquidity. Furthermore, especially interest benefits in multiple ways can be achieved for the pool participants on the payable and on the receivable side. Type 1: Zero- or Target Balancing Cash Pool (physical) The zero-balancing, also called cash-concentration or sweeping, is in his form the easiest way to introduce cash pooling. Depending on a surplus or lack of cash, all cash balances in the Pool (Pool-Participants) will be transferred on daily basis automatic to or from the top- mother account (Pool-Leader). A major positive effect is a shorter balance and therefore the key-figure of the debt-ratio improves. But there are also some disadvantages, e.g. liability-questions in case of a short-fall of the pool-leader (see Erb-Group and Swissair in Switzerland or Bremer Vulkan in Germany). Also there is a higher..

Registration numbers: CHE-113.860.946 HR (W)

VAT numbers: CHE-113.860.946

Primary location: St. Gallen Switzerland