PwC’s white paper highlights cash pooling as a strategic tool for optimizing liquidity and reducing borrowing costs. It explains two types: notional pooling (interest optimization without moving funds) and physical pooling (central fund transfers for greater control). Benefits include improved cash visibility, higher interest earnings, and streamlined operations. However, challenges such as administrative costs, legal risks, and reduced subsidiary autonomy must be considered. A successful implementation requires clear policies, legal agreements, system setup, and continuous monitoring to ensure efficiency and compliance.

Join for free to read