Cash pooling offers clear advantages to businesses that want to make cash ‘trapped’ in subsidiaries available at the group level.
Lower banking costs, reduced need for finance and better risk management are just some of them. However, setting up a pool takes time, money and resources, so planning for success is essential.
The eight corporate treasurers who joined The Working Capital Forum and our sponsor Coupa for our virtual round table were all at different stages of their journey to pooling; one had already set up a pool as part of extensive restructuring of the treasury and liquidity function. Another had established inter-company netting and was leveraged that experience to move forward to a cash pool.
From a wide-ranging conversation over a ‘virtual’ lunch, some clear pointers emerged for anyone starting down this path in their own business:
This lunch, sponsored by Coupa, was the latest in a series of virtual roundtable lunches organised by The Working Capital Forum, which returns to live events on 14th October with The Working Capital Forum London.