Liquidity Management

Since 2006 UniCredit Bank has been offering fully automated Domestic Physical Cash Pooling solution – an advanced tool used to consolidate Group cash flows on one Master Account for better management possibilities, and to automatically provide funding from that account to Participant accounts in order to finance external payments.

Liquidity Management

UniCredit Bank is one of the market leader in Liquidity Management products. We are proud to propose a wide range of tailor-made liquidity management solutions aimed at improving the efficiency of how the Companies are using their internal cash flows.

UniCredit Bank offers modern solutions for corporate liquidity management. Physical pooling is one of such solutions, that allows to consolidate all funds and accounts of a company in one master account and connect new accounts thereto.

How does it work?

You have a master account that is owned e.g. by the company’s head office. Other accounts, owned, for example by regional branches of the company, are consolidated with that account (pooled together). During a banking day excess balances are automatically transferred at regular intervals from the pool participants accounts to the master account. You may individually agree upon with the Bank the frequency of such transfers. Thus, the funds are consolidated, and account management is optimized.

UniCredit Bank has developed three options of accounts management for the pool participants:

Standard: during the day a pool participant uses its funds in a standard mode, no transfers are made from the master account;
Funding from the master account: if funds on the pool participant’s account are insufficient to make a payment, the required funds are transferred from the master account;
Full utilization of funds from the master account: a pool participant makes payments with the funds of the master account only.

UniCredit Bank offers both Zero Balancing (when all the funds are swept from the participants’ accounts to the master account) and Target Balancing (when a certain amount is left on the participants’ accounts) Cash Pooling solutions.

What are the advantages of physical pooling?

Funds are consolidated on a single master account and cash flow management is more efficient;
Control over the working capital is improved;
Financial potential of the whole group is utilized, and the group financial expenses are reduced;
Unified cash flow coordination makes planning and control over the group financial operations easier;
All payments are executed automatically by the Bank on behalf of the company under the contract; there is no need to submit original payment documents;
Overdraft limit may be set for the master account and the pool participants accounts, in such case funds may be transferred from one account to another account from the overdraft limit as well;
Resident and non-resident accounts may be consolidated to make resident to resident, resident to non-resident and non-resident to non-resident transfers;

How to start using this service?

Please contact your bank branch to enter into a physical pooling service addendum for your accounts. If the account that you wish to include in a single pool are owned by different legal entities, you will also need a corporate loan agreement or any other non-gratuitous contract entered into between those legal entities.

UniCredit Bank can offer you customized solutions at any time. We take into account the specifics of the company’s business and offer physical pooling that meets your requirements in full.

To save Company’s time and reduce manual inputs, UniCredit Bank offers its Client standing orders, which allow for automatic payments with given details. Such orders allow to transfer fixed amount of funds to other accounts (including with other banks), transfer amounts exceeding certain threshold or to make transfers in such amount to make sure that the balance on Beneficiary’s account will be equal to a certain threshold.