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cash concentration

Cash Concentration is a corporate treasury management technique involving the transfer of all funds from different accounts to a single, centralised account to increase cash management efficiency and reduce fees.

There are numerous advantages to concentrating all available funds into a single account. Businesses can improve the visibility and availability of their funds and gain more control over deposits from diverse locations while ensuring that no funds are lying in bank accounts that don’t generate interest. Cash concentration also reduces bank service charges to those of the central account and makes it simpler to monitor cash flows.