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Wholesale Banking

Notional Cash Pooling

Notionally concentrate cash to preserve the autonomy of subsidiaries within your decentralised operational structure. Combine ’Balance Set-Off’ and ’Interest Set-Off’ solutions to centralise liquidity position across subsidiary accounts, without commingling of funds and to optimise interestDecorative image-notional cash pooling-two working men being excited

ING Notional Cash Pooling

Notionally pooled balances

Rather than physically concentrating cash, notionally pool balances across individual subsidiary accounts with a combination of ‘Balance Set-off’ and ’Interest Set-Off’ on a respectively single or multi-currency and single or multi-entity basis.

Maintain account integrity

Notionally offset funds across subsidiary accounts without commingling of funds or intercompany lending, allowing participating accounts to maintain control over daily cash management and individual payments rather than pooling funds into one header account.

Shred credit facility across accounts

Facilitate a shared credit line across all subsidiary accounts up to a specified limit, allowing participating accounts to borrow funds and temporarily cover cash deficits without the need for (intercompany) loans, unnecessary overdraft charges, or adverse liquidity impact. 

Notionally combined cash flow with greater autonomy

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Maintain an overview of a consolidated cash position in a virtual pool without physical concentration of funds.

Enhance account autonomy, allowing subsidiaries to have control over their own credit lines and accounts while achieving a single liquidity position.

Facilitate shared credit across all participating accounts, allowing subsidiaries to effectively manage individual payments and cash flow.

    

Consolidated cash flow for decentralised structures

Clear overview of total company cash flow 

Aggregate cash balances into one virtual pool to reduce idle cash and maintain overview of total company cash flow.

Profitable interest rates

Reduce interest expenses and optimise earned interest by notionally offsetting debit and credit balances in the same currency to one notional pool.

Notional cash concentration

Notionally combine funds without physically consolidating cash flow into one header account.

Notional cash pooling solutions: how it works

Balance set-off

In a balance set-off pool (balance compensation), all accounts are permitted to have a debit balance position as long as there are other accounts in the same pool with sufficient credit balances. To assess whether a payment will be accepted or rejected, balances across accounts are combined. The balance set-off structure can include accounts of multiple currencies, but all accounts must be held with ING Netherlands. It’s also possible to limit the maximum debit position of individual participating accounts by specifying a debit amount limit. 

Interest set-off 

In an interest set-off pool, interest is paid or charged by ING based on the combined or net balance of all subsidiary accounts within the interest set-off pool. This is always within a single currency, and all accounts must be held with ING Netherlands. Since debit balances are combined with credit balances to generate a net position, this optimises interest earnings and reduces interest costs on idle cash. 

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Unlock the benefits of Notional Cash Pooling for your business

ING offers customised cash and liquidity management solutions to suit your organisational needs. We currently serve corporate clients and financial institutions in over 35 countries, pairing local and global insight with sector knowledge and financial expertise to provide greater cash flow control, visibility, and efficiencies for our customers.

Interested to know what Notional Cash Pooling can do for you?

Contact your ING representative and start consolidating cash flow for decentralised structures.

Explore Physical cash pooling instead

Why partner with us

Our purpose is to empower people to stay a step ahead in life and in business. So whatever your financial needs, whether you are looking to expand and want strategic advice, or just want to make your day-to-day banking more efficient, we are here to support your business ambitions.

  • Serving corporate clients and financial institutions in over 35 countries.
  • We pair local and global insight with sector knowledge with financial expertise.
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