With UniCredit cash management solutions, all accounts of a company held with different banks at home and abroad can be combined into what is known as a cash pool. Balances on the various accounts are pooled automatically. The different value dates are taken into account using specific pooling procedures, and the funds are concentrated in a master account specified by the customer.
The purpose of physical pooling is to bring together the credit and debit balances of your main and subsidiary accounts in order to establish the target balance desired at any given time.
Before these automated processes are set up, however, each country and account will be analysed carefully in order to select the pooling solution which suits your needs and requirements best.
Zero balancing is a fully automated procedure whereby, subject to the agreement of the individual banks concerned, the aggregated (credit and debit) balances from predefined sub-accounts will be transferred to a concentration account without loss of the original value dates. The accounts of the participating subsidiaries are set off daily to “zero” and funds are concentrated in one central account (Pool Master Account).
Benefits of Zero Balancing
UniCredit's Target Balancing service is fully automated, nevertheless, at the same time allows you to amend the prepared transfers to your current cash needs. We can offer same day value transfers according to the agreement and capabilities of the partner banks.
You can define the following parameters depending on your needs, for example:
Using our CPE@web online tool provides you with an overview of balances on the participating accounts and allows you to plan your local cash needs and amend the transferred amounts before the transactions are executed.
Benefits of Target Balancing
Mr. Markus Straussfeld
Head of Cash Management International Sales