Treasury & Multi-Lateral Netting
A global organization has diverse business operations located across different countries. These business units and affiliated companies sell and purchase goods and services from one another,generating inter-company transactions in a multitude of currencies. This naturally increases costs in a number of ways: Payment volumes and cross border transactions increase as do transaction fees and bank charges. Without active management, significant foreign exchange exposures can build up and significantly increase risk to earnings.
AvantGard Netting provides a comprehensive multilateral netting solution that allows a global organization to efficiently manage inter-company transactions and to settle them internally, reducing the number of external payments, cross border flows and foreign exchange deals. The operational efficiencies realized through netting inter-company invoices translate directly into reduced bank fees, bank balances and currency conversion costs.
Features:
- Seamless processing of external cash settlement transactions
- In-house bank transactions, inter-company loans and foreign exchange deals
- User-defined netting cycles and currencies
- Foreign exchange dealing sheet
- Netting Statements and confirmation letters
Benefits:
- Decrease or eliminate cross border flows at the business unit level
- Reduce or eliminate inter-company payment volumes
- Lower currency conversion costs
- Reduce bank fees and charges
- Establish clear settlement time frames for inter-company transactions