Optimize your business cash flow with KBC Cash Pooling Solutions
Unlock financial efficiency and growth with our tailored made solutions.
What is cashpooling?
It is a financial strategy used by companies to manage their cash flow more efficiently. It involves consolidating cash from multiple accounts and legal entities into one central account, which allows the company to optimize its liquidity and reduce its borrowing costs.
This can be done through two techniques such as physical pooling, where funds are physically transferred to a central account or notional pooling, where funds remain on the individuals accounts but are still offset against each other.
Why is cash pooling interesting for your company?
It helps you to optimize your cash management processes:
By consolidating funds from various accounts into a central pool, you can improve liquidity management and reduce your borrowing costs.
This can lead to better overall financial efficiency, cash visibility and flexibility, allowing your company to allocate resources more effectively.
Here are the main advantages of starting a cash pool:
- Reduction of financing needs by offsetting debit account with credit account avoiding over-financing
• Therefore, promoting intra-company financing instead of external source of financing. - Optimization of financial resources, create a greater availability of funds and avoid to disperse balances across multiple accounts
• Act to reduce and secure the liquidity risk - Better cash visibility, allows you to better forecast your organization financial needs.
Which types of cash pool do we offer?
The physical cash pool
It centralizes cash from participating accounts to the master account in the pool (by means of actual transfers between all accounts in the pool). The participating accounts are set to zero at the end of each day. This is what we call a “zero balancing cash pool”. The master account thus holds the overall cash position of all participating accounts in the pool.
It is also possible to pool accounts from abroad, we call it “cross-border zero balancing cash pool”
The notional cash pool
It doesn’t centralize cash on the master account, no actual transfers are made between accounts. A fictitious “compensated balance” is calculated (compensating debit & credit balances) for interest and/or balance optimization.
- KBC has a specific offer according to your need for pooling account in an notional context including cross-border, multi-entity and multi-currency solutions.
Cash pool module
The cash pool module is available for all cash pool users on our Business dashboard and it is free of charge!
It offers a clear view of the cash pool structure, the different cash positions on the participating accounts in real time or in a booked view.
Cash pool module in a nutshell:
- Available from your Business Dashboard
- Always a complete view of your cash pool structure (simple and convenient regardless of the type of cash pool)
- See your overall cash position across all participating accounts (in real-time for all KBC accounts in Belgium and abroad)
- All on-screen information easy to download
Convinced?
We invite you to reach out to our experts who will gladly discuss with you the most appropriate cash pool structure that will fit your company's needs.
IBOS makes a world of difference
IBOS is an international banking alliance that provides connectivity for KBC’s clients who are looking to expand. It gathers some of the biggest commercial banks from across the globe and can therefore offer an effective and thorough cash management.
- As a member of IBOS, KBC can help its corporate clients to open up accounts across different market
- IBOS offers local banking services through a global network of market-leading banks
- Enjoy a more seamless, centralized and enhanced cash flow experience
The IBOS group coverage includes the following countries:
Belgium, Brazil, Bulgaria, Canada, Chile, Colombia, Croatia, Czech Republic, Denmark, France, Germany, Hungary, Ireland, Italy, Mexico, Peru, Poland, Portugal, Romania, Slovakia, Slovenia, Spain , United Kingdom, United States, Uruguay.