presentation by jeananne o'sullivan
DESCRIPTION
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
PURCHASESALESCustomers
Receive orders
Invoicing
Payments
Reconciliation
What Every Business Has to Think About
PaymentsAccount InformationFile TransferCollection ServicesTrade FinanceCurrency TradingIntegration with Account Management SoftwareCorporate Cards
Debtor
Creditor
Order
Purchase
SaleInvoice/collection Balancing
Order
Balancing Invoice
Creditor
Debtor
HR/salaries
Delivery
•Collection Service•Trade Finance•Credit card payments•Bank Giro Credit
•Acc. Information•Lodgement•File Transfer •Cap File
•Acc. Information•File transfers
•Acc. Inforamtion•File transfers•Reconciliation Serv.•Host to Host•Collection Service •(Unpaid D/D’s)
Internet accountTrade Finance
Corporate CardMarkets Online CurrencyTrade Finance
E-invoiceTravel accountERP/Integration
Acc. InformationFile Transfer
PaymentsFile TransfersTrade FinanceCredit Card, cheques
Payments (Groups)File transfersAuto giro
Liquidity ManagementMarkets Online (all 3)
•Corporate card•Markets Online Currency
Due Date & Payment
Book-KeepingReceipt
of Payment
Liquidity Management
Business eBanking – World Class Capability
Cash Management • Tools to help manage working capital
– account information, payments, file transfers
Trade Finance• Processing of export and import
documentary credit• Danske Group confirmation capability
of letters of credit within 24 hoursMarkets On-line
• 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!
Liquidity Management
• 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
• Target balance.• Upper and Lower triggers• Free choice of period (i.e.
daily, weekly…)• Based on SWIFT MT940,
MT101 and MT103 message types
Questions ?