What is cash concentration?
Cash concentration moves funds from a subsidiary's local depository account to the company's master (concentration) account.Who can benefit from cash concentration?
Who can benefit?
- Companies with multiple lockbox locations
- Companies with local or regional sales facilities that require a local depository account
- Companies that want to maintain a local presence when their primary bank is elsewhere
How does it work?
- Funds are moved to the concentration account electronically through the Automated Clearing House (ACH)
- ACH transactions automatically debit the subsidiary's account and send the funds directly to the concentration account
- ACH transactions are initiated through iLINK or Fed Ready File transmission
Benefits to you
- Detailed information on all inflow and outflows of cash gives you better cash control
- Idle balances are reduced
- Investment funds are centralized for higher yields, lower costs
- Mail processing and float are reduced
- Funds availability is maximized
- Economical movement of funds
