Group account
Group account - it is an account of companies, forming the Group, where individual member's account balances can be screened.
Benefits and advantages:
- An in-house borrowing mechanism is in place
- A lower need for borrowing from third parties
Companies, forming the Group, are free to use each other's funds within the pre-established individual borrowing limits. - A lower amount of expenses of the interest on loans
A certain number of companies need a lower credit limit - as opposed to that required by individual companies separately. - A higher income from interest on account balances
As a rule, "Swedbank" offers beneficial terms for keeping large amounts of funds on one bank account. With huge amount of funds accrued, the parent company is in a position to form an overnight deposit and automatically transfer to it all the funds that have been accumulated on a group account in question. - A more efficient monitoring of the management of the Group's funds
The parent company is free to set internal borrowing limits for the Group's members and fix interest rates on such credit limits and positive account balances.
How does the group account operate?
A number of the Group's companies may authorize the parent company to open a group account. With the help of such an account, the parent company can, therefore, monitor the existing funds in the Group and determine borrowing limits, in all permissible currencies, for its subsidiaries-members of the Group. Members of the Group are free to conduct, within the internal borrowing limits established, payment transactions, the amounts of which exceed their individual account balances.
Statements of the group account
The parent company is able to keep track, via the Swedbank Electronic Banking Programme for Business Clients facility, of its member's account status and provide a possibility of receiving in the Bank account statements indicating the following information:
- interest charged on positive and negative balances existing on a member's account;
- movements of funds, in all currencies, on a member's account.
How to open a Group account?
Should you get interested in the group account facility, please address your business customer manager in the Bank or call (8-5) 268 44 44.
