This possibility is made possible by agreements between the European Investment Fund (EIF) and Swedbank This service allows the foreign bank customer to work with the accounts of the Swedbank customer: making account payments with Swedbank and obtaining bank statements on accounts from Swedbank. In order to provide this service, the Swedbank customer authorizes Swedbank, in accordance with the contract, to send bank statements to the foreign bank and to make payments from the customer`s account to the bank whose orders are placed by the foreign bank on behalf of the foreign customer via the SWIFT system. Finally, participants must be able to terminate the cash-pooling contract at any time. In order to guarantee this service, the Swedbank customer authorizes Swedbank, in accordance with the agreement reached, to obtain bank statements from the foreign bank`s customer and to display them in the internet bank for business customers and to send payment orders to a foreign bank for which the Swedbank customer orders via internet banking for business customers. tm5 actually has an additional ordinary function: you can use target balance rules to set an account to transfer based on a pre-defined amount. Maybe your accounts will stay at Citibank until they reach $10 million, and then they will be automatically transferred to JP Morgan. One of the most important factors you need to think about is the cash pool`s transaction requirements. Depending on the structure of your account and the frequency with which you withdraw money, the potential is to make many more transactions per period than in the case of a vanilla account structure. For this reason, the easy addition of a pool bank in addition to your normal cash structure can result in considerable costs. In order to implement the solution in a structural and adapted way, a tailored offer is developed. Read more: Benefits of clearing and cash pooling for a home bank That`s why Target Balancing is a „customized“ product for each customer, because to achieve its functionality, we select options that meet the needs of each customer business as much as possible. By using this service, corporate clients are no longer required to check the balances of business subdivisions and generate a large number of transfer orders when funds are to be accumulated in the main company`s account.

This service allows balances to be accumulated on the main company`s account within the time agreed with the customer. Cash pooling combines all net increases and reductions to the group`s coffers, giving all companies the opportunity to use the terms of interest of the Central Ministry of Finance. When pooling is done inside your MSD, you can schedule bank sub-account scans by simply adding a transfer. From the bank`s point of view, your money is only moved then – although you probably lose the benefit of the reduced transaction fees you get with a single bank solution, and transfers may not be as fast. The three nations prohibit the free cross-border movement of money. This could make it impossible to merge with offices in those countries. You will find more detailed information on Swedbank solutions by email at the Bank: cashmanagement@swedbank.lv Frank Song is senior Treasury Consultant at BELLIN with more than 5 years of experience in implementing tm5 for companies of different sizes and sectors.