Presentation by Jeananne O'SullivanPresentation Transcript
Cash Management Presentation Chamber of Commerce Breakfast Meeting September 2008
What on earth is Cash Management ?
“ Making money on money”
and making money through efficient procedures & support systems.
Has a direct impact on Shareholder Value and Profitability.
Releases Capital Employed from the balance sheet and identifies and realises administrative cost savings.
Suppliers Receive and approve invoices Payment and bookkeeping Liquidity Management Working capital Currency Trade Finance Financing Leasing HR administration Payments – and credit cards Pension Salaries/Wages LIQUIDITY Administration PURCHASE SALES Customers Receive orders Invoicing Payments Reconciliation What Every Business Has to Think About
Payments Account Information File Transfer Collection Services Trade Finance Currency Trading Integration with Account Management Software Corporate Cards
Credit card payments
Bank Giro Credit
Host to Host
Internet account Trade Finance Corporate Card Markets Online Currency Trade Finance E-invoice Travel account ERP/Integration Acc. Information File Transfer Payments File Transfers Trade Finance Credit Card, cheques Payments (Groups) File transfers Auto giro Liquidity Management Markets Online (all 3)
Markets Online Currency
Due Date & Payment Book-Keeping Receipt of Payment Liquidity Management Debtor Creditor Order Purchase Sale Invoice/ collection Balancing Order Balancing Invoice Creditor Debtor HR/salaries Delivery
Business eBanking – World Class Capability
Tools to help manage working capital – account information, payments, file transfers
Processing of export and import documentary credit
Danske Group confirmation capability of letters of credit within 24 hours
Mini trading desk in customer’s office
Securities, foreign exchange, forward contracts, swaps and options
One point of entry to one banking system.
Visibility and Management of information and transactions.
Reduced transaction costs.
Same day value for funds transfers in same system.
Execute cross border transactions as local payments
Open local collection accounts in customers home countries.
Cross Border Banking – The answer!
Visibility of your funds – Nationally and Internationally
Control over your funds – Nationally and Internationally
Ability to concentrate your funds to one location/account
Enables you to optimise the use of and return on your money!
Group Cash Pool (zero balancing)
Physical movement of funds!!
TOP account /SUB accounts
Zero balancing automatic sweeping per transaction between SUB accounts and TOP account
Single currency - in all major currencies
Internal balance, control of available funds (optional) and inter company interest calculation at SUB account level
External balance, control of available funds and interest calculation at TOP Account level
SUB account TOP ACCOUNT SUB account SUB account
Cross Border Sweeping
Automated service for concentration of liquidity cross border and cross banks
Upper and Lower triggers
Free choice of period (i.e. daily, weekly…)
Based on SWIFT MT940, MT101 and MT103 message types