Cash management agreement between companies




The purpose of the cash management agreement is to pool the cash resources of the companies belonging to the same group. One company will therefore provide financial assistance to another, which will enable it to obtain loans more easily when such an operation is justified. Cash management agreements are generally entered into between the group’s holding company and a subsidiary company. The latter then entrusts the holding company with the management of its cash, in return for remuneration. The holding company is therefore remunerated for the advances it makes to its subsidiary at a certain rate. This rate corresponds to the bank base rate as published by the Banque de France on the date of signature of this agreement.


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