AFP Multilateral Netting Promotion
Own Your Cash Flow with Multilateral Intercompany Netting
Time is money and our clients are saving both. BELLIN clients save an average of two days per month of workload per subsidiary and save $250,000 to +$1,000,000 annually. Find out how netting can benefit your company with invoice tracking, invoice matching, compliance, centralized FX risk, cash allocation and reduced bank fees.
Stop by the BELLIN Booth at AFP 2018 to find out more about the limited-time promotion for our Multilateral Intercompany Netting solution.
So how does netting work?
Well, rather than each company settling their invoices bilaterally, an in-house clearing center or “Netting Center” is established. All outstanding invoices are reported to the Netting Center and settled on a pre-defined schedule: companies with net receivables are paid by the Netting Center, while the Netting Center collects funds from companies with net payables.
What are the benefits?
- Process automation: time spent on tracking, reconciling, and settling of intercompany invoices is drastically reduced allowing the business to focus on operations.
- Better cash management: surplus or shortages in cash across the business can be precisely predicted due to one settlement day per month. For the rest of the month, cash can be put to work instead of moving from one business to another all month long.
- Bank fees are reduced as the number of payments and currency conversion costs drastically fall
- Foreign exchange management is centralized allowing the netting center to negotiate more competitive FX rates leading to a further reduction in bank charges and FX margins
- Compliance through transparency: what happens if a business doesn’t pay an outstanding invoice? To tax authorities, that constitutes an intercompany loan which without netting can easily slip through the cracks. Netting facilitates intercompany refinancing and prevents negative tax implications.
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