Target Balancing brings the balances of sub-accounts to a predetermined level by offsetting amounts above and below a predetermined target.
Key features
For each sub-account, you can specify:
- the frequency of Target Balancing transactions: daily, weekly, fortnightly
- the way in which Target Balancing is carried out currency by currency, e.g. one Target Balancing pool in USD, another in GBP, EUR, etc.;
- the threshold: a positive or negative minimum amount below which no transfers are carried out.
Key benefits
- improved financial results: Target Balancing allows the margin between debit interest and credit interest to be cancelled out on cleared balances;
- reduced costs: the cost of pooling the balances of all the sub-accounts is generally lower than the total costs of all the separate, single transfers;
- reduced debt levels as a result of offsetting debit balances;
- simplified management;
- clearer net balance;
- time savings through automation of numerous individual transfers;
- online reporting, giving details of all individual Target Balancing transfers.