1. Implement Real-Time Cash Pooling
Centralising your balances lets you eliminate idle cash and borrow only what you need. Two common models:
- Virtual (physical) pooling: Surplus funds are physically swept to a master account at defined intervals.
- Notional pooling: Balances are offset for interest calculation without moving the money, reducing transfer friction and FX noise.
How to act:
- Pick a banking partner (or treasury API) that supports automated sweeps and provides intraday statements (MT942 / CAMT.052).
- Define entity-level minimum/maximum thresholds; let rules move the rest to a hub for investment or debt paydown.
- Mirror the pooling structure in your ledger so accounting stays clean—use virtual accounts for each subsidiary.
Tip: Start with end-of-day sweeps, then graduate to event- or balance-triggered sweeps when your data quality improves.
2. Optimise Sweeping Schedules
Daily sweeps are fine for steady-state businesses. High-velocity models (marketplaces, payroll processors) need finer control.
Tactics:
- Event-driven sweeps: Trigger after large settlement batches, payroll runs, or payment gateway deposits.
- Analytics-led timing: Use historical transaction data to spot when balances spike, then sweep minutes later.
- Micro-sweeps for interest: If your bank pays intraday interest or charges negative rates, multiple small sweeps can outperform one big one.
Create a simple rules engine:
IF balance(entity) > X by 14:00 local
THEN sweep excess to hub
ELSE leave until EOD