Cash Pool Account

Simple and effective management of funds!

The key feature of the account is the notional pooling of funds from current accounts of several companies connected within a group which enables:

  • having a single view of all the group’s funds;
  • borrowing funds within the group;
  • convenient and centralized account handling;
  • reducing the need for external credit resources.

Advantages

  • an efficient solution of managing and maximizing return on current assets both for a single company and a group of companies;
  • in case of credit facility, it is made available to the whole group with the group members remaining liable, jointly and severally, for the liabilities;
  • a possibility of setting up and managing an internal online credit market;
  • automatic zero/ target balancing;
  • a chance to pay less interest to the bank for credit liabilities.

Cash pool account statements

  • average and minimum group member balances in current accounts over a specified period of time;
  • the calculated interest rates fixed between the group members by the manager of the group of companies through setting up the group’s internal credit market;
  • daily cash flow statements for all the current accounts included in the group;
  • cash pool account members’ turnover over a specific period of time.

Implementation of the cash pool account

A tailor-made offer is developed in order to implement the solution in line with the structure and the needs of the group.

Please contact the bank for an offer by e-mail to cashmanagement@swedbank.lv

Company 1 Company 2 Company 3
Monthly average account balance + 48 000 EUR + 60 000 EUR - 70 000 EUR
Example of calculation without Cash Pool Account solution
Interest earned on credit balance per month (at indicative rate of 0.5%) + 20 EUR + 25 EUR -
Interest paid on debit balance per month (at indicative rate of 6%) - - - 350 EUR
Financial result 20 + 25 - 350= - 305 EUR
Example of calculation with Cash Pool Account solution
Interest earned on credit balance per month (at indicative rate of 0.5%) 1) 48 000 + 60 000 - 70 000 = + 38 000 EUR
2) 38 000 x 0,5% / 12 = 15,83 EUR
Interest paid on debit balance per month (at indicative rate of 6%) Consolidated group balance + 38,000 EUR no debit balance, no interest payments
Financial result 15,83 - 0,00 = 15,83 EUR
Your gain Saved 305 EUR + Earned 15.83 EUR = 320.83 EUR

Services to customers of Swedbank for operations with accounts held with foreign banks using SWIFT MT940 IN / MT101 OUT

This service enables the customers of Swedbank to operate with accounts of customers of foreign banks in the internet banking for business clients: to effect payments from accounts held with foreign banks and to receive account statements on accounts held with foreign banks.

In order to ensure this service, pursuant to the concluded agreement the customer of Swedbank authorises Swedbank to receive account statements of the customer of the foreign bank and to display them in the internet banking for business clients and to send payment orders to a foreign bank, for which the orders are given by the customer of Swedbank via internet banking for business clients.

Procedure

  • Pursuant to the concluded agreement the customer of Swedbank authorises Swedbank to receive account statements from a foreign bank as regards the account of the customer of the foreign bank and to display these statements to the customer in the internet banking for business clients and/or to send payment orders to the foreign bank as regards execution of payments from the account of the customer of the foreign bank;
  • Customer of the foreign bank authorises the foreign bank to send his account statements to Swedbank and/or authorises to effect payments, the orders for which are made by Swedbank on behalf of the customer;
  • Swedbank concludes a co-operation agreement with the foreign bank;
  • Foreign bank sends account statements to Swedbank on regular basis and these statements are available in the internet banking for business clients;
  • Foreign bank executes payments, for which orders are given by the customer via internet banking for business clients.

Advantages

  • Customer of Swedbank can control cash flow in the accounts held with foreign banks in a centralised manner;
  • This service is available in the internet banking for business clients.

In order to use this service, the following is needed

  • Customer of Swedbank has to conclude an agreement with Swedbank;
  • Customer of the foreign bank must conclude an agreement/draft an authorisation with the foreign bank;
  • Swedbank has to conclude a co-operation agreement with the foreign bank. Upon proposal of the customer it is possible to conclude co-operation agreements also with other foreign banks.
Learn more about the foreign banks with which Swedbank has concluded a co-operation agreement

You can receive more detailed information on solutions offered by Swedbank by contacting the bank via e-mail: cashmanagement@swedbank.lv

Services for customers of foreign banks for activities with accounts held with "Swedbank" AS using SWIFT MT940 OUT / MT101 IN

This service enables the customer of the foreign bank to operate with accounts of the customer of Swedbank: to effect payments from accounts held with Swedbank and receive account statements on accounts held with Swedbank. In order to ensure this service, pursuant to the agreement concluded the customer of Swedbank authorises Swedbank to send account statements to the foreign bank and to effect payments from the account of the customer held with the Bank, the orders for which are given by the foreign bank on behalf of the foreign customer by using SWIFT system.

Procedure

  • Сustomer of the foreign bank authorises the foreign bank to receive account statements of the customer of "Swedbank" AS and/or to send payment orders on execution of payments from the account of the customer of Swedbank;
  • Сustomer of Swedbank authorises Swedbank to send his account statement to the customer of the foreign bank and/or authorises to effect payments, the orders for which are given by the foreign bank on behalf of the foreign customer;
  • Swedbank concludes a co-operation agreement with the foreign bank;
  • Swedbank sends account statements to the customer of the foreign bank on regular basis;
  • Swedbank executes payments, the orders for which are given by the foreign bank on behalf of the foreign customer.

Advantages

  • Сustomer of the foreign bank can control the cash flow in accounts held with Swedbank in a centralised manner;
  • Еhis service is provided to the customer of the foreign bank by his foreign bank ( there is no need for any separate agreements with Swedbank)

In order to use this service, the following is needed

  • Сustomer of the foreign bank must conclude an agreement/draft an authorisation with the foreign bank;
  • Сustomer of Swedbank has to conclude an agreement with Swedbank;
  • Swedbank has to conclude a co-operation agreement with the foreign bank. Upon proposal of the customer it is possible to conclude co-operation agreements also with other foreign banks.
Learn more about the foreign banks with which Swedbank has concluded a co-operation agreement

You can receive more detailed information on solutions offered by Swedbank by contacting the bank via e-mail: cashmanagement@swedbank.lv