cash pooling


A cash management technique employed by companies holding funds at financial institutions. Cash pooling allows companies to combine their credit and debit positions in various accounts into one account, and includes techniques like notional cash pooling and cash concentration. Notional cash pooling has the company combine the balances of several accounts in order to limit low balance or transaction fees. Cash concentration or zero balancing has the company physically combining various accounts into one single account.

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Their cash pooling technique was really cool and interesting and I thought it was really good for us to have.

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When their cash flow gets short, the company uses cash pooling to prevent the multiple problems associated with low or negative balances.

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My boss prepared an arrangement with our allied companies in the region to put together a cash pooling plan so we would all be able to have access to credit at our bank.

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