Balance Netting Cash Pool

- make optimum use of your group’s liquidity

Dansk version Dansk version

A Balance Netting Cash Pool is a flexible account setup enabling a group to gather all its accounts in one account. Hence, one account - called the Top Account - will be the only outstanding account between the group and Jyske Bank. The underlying accounts are used for payment transactions and are exclusively an internal affair in the group.

Three strong advantages of the Balance Netting Cash Pool:

  • Overview with the possibility of individual setup
  • Low interest expenses - because the liquidity will be gathered and the need for external financing will be reduced
  • Improved financial position due to a trimmed corporate balance sheet

Cash pool - an example

In the example the group's total amount drawn will be reduced from DKK 12,400,000 without the Cash Pool to DKK 6,540,000 with the Cash Pool.

Interest - to the Bank

The balance of the Top Account reflects the Group’s outstanding account with the Bank and will appear from the company’s balance sheet. Interest to the Bank is calculated on the basis of the net balance of the Top Account.

Interest - internally

The group decides the interest rate to be charged between the individual companies and on the individual accounts. On this basis, the Bank will calculate the internal rate of interest on sub-accounts and make entries on these - with set-off entries in a special interest account or the parent company’s main account.

The overdraft facility and cover control

The group’s credit line is linked to the Top Account and can be used for all accounts in the Cash Pool. The group will itself define internal credit lines for sub-accounts or Summary Accounts. First, a payment from a sub-account will be checked to verify whether the internal credit line provides sufficient funds to cover the payment and next whether the Top Account provides such cover.

Multicurrency CASH POOL

The Cash Pool setup can be extended with a Multicurrency Cash Pool. This will enable the group to optimize liquidity across currencies - for instance by netting deposits in EUR against loans in DKK. If so, the setup will be supplemented with so-called Currency Top Accounts in the relevant currencies - in order to secure overview and control.