cash pooling

Cash pooling is a banking arrangement that allows multiple companies within a group to manage their cash resources collectively. It consolidates the funds from different accounts into one central account, making it easier to optimize liquidity, reduce borrowing costs, and improve overall cash management. This means that surplus funds can be shared among the entities as needed, ensuring each company has enough liquidity for its operations without holding excessive cash. Cash pooling enhances efficiency and financial control across the group while simplifying cash flow planning.