Sweeping and Notional Pooling
Cash-management tools to support your liquidity and working capital requirements.
Businesses with liquidity and working capital requirements.
Also suited to those with multiple subsidiaries.
Key Features - Sweeping
- An automated solution which moves money between specified accounts to stop balances being too high or too low.
- You can move funds to keep borrowing costs as low as possible.
- You may be able to earn more credit interest by moving surplus funds into an interest earning account.
Key Features - Notional Pooling
- The ability to group (pool) accounts, so the credit balance in some accounts can offset the debit balance in others.
- Notional Pooling aids account reconciliation, as there’s no physical movement of funds.
- You can minimise the amount of debit interest you pay if you have surplus funds in any account that is part of the pool.
- You may be able to reduce the number of separate arranged overdrafts, thereby reducing arrangement fees.
How we can help you
We know keeping track of multiple accounts can be a challenge. We have two services which could help. Firstly, our automated Sweeping service enables you to move your money into one account, perhaps an interest-earning deposit account. You may then earn credit interest on that balance. Or you can move money to your current account to pay less debit interest on any overdrawn amount.
Secondly, Notional Pooling delivers a similar result, without the physical movement of funds. This allows your business accounts to remain separate and so avoid inter-company borrowing. Debit or credit interest is calculated daily, based on the net balance across the accounts and charged or paid monthly.
Both solutions support working capital needs and can help improve the liquidity of your business. Please contact your Relationship Team if you’d like to discuss these products in further detail.
As tax and legal considerations can arise when setting up these arrangements, you may want to seek independent legal and tax advice. Applications are subject to status and the right to decline any application is reserved.
To be eligible for Notional Pooling there’s a minimum borrowing threshold of £25,001. Set up and maintenance fees apply.