Cash pooling is a banking setup used by groups of companies to manage cash across several accounts. Surpluses in one account offset deficits in another, which can cut borrowing costs and give clearer control over group liquidity. It is arranged with a bank and usually applies to companies under common ownership.

In practice, the group chooses how cash is combined. With actual transfers, you create intercompany balances that must be recorded as loans between participants. With interest-only offset, the money stays where it is and the bank calculates interest on the net position. Cash pooling is common in larger groups; a single-entity small business typically does not need it.

Main types and how they differ:

Provozní: platby dodavatelům, mzdy, nájemné, běžné provozní poplatky.
Investiční: nákupy strojů, vybavení nebo dlouhodobého majetku.
Finanční: splátky jistiny úvěrů, výplaty vlastníkům podle zvolené politiky.

Physical (zero‑balancing): Cash is swept into a master account and participant accounts are set to zero. This creates clear intercompany receivables/payables and centralises payments.
Notional pooling: No money moves between accounts. The bank offsets balances for interest. It often needs cross‑guarantees and set‑off agreements between participants.
Multi‑currency or cross‑border: Netting may be done per currency, with optional conversion to a base currency. These setups are more complex and come with extra legal and banking requirements.

Banks usually require common ownership, suitable account mandates and a formal pooling agreement. Check fees, reporting, user access and what happens if one participant goes overdrawn, so everyone knows their responsibilities.

Dictionary terms starting with the letter "C"