Intercompany Netting in an Unpredictable World: Part II

In this two-part collection for FX in Focus, Sean Coakley, CFA Director, Strategic Sales, & Market Strategist at Corpay Cross-Border Solutions, connects with Jim Kessler, Vice President of Global Treasury Solutions at Corpay. They explore intercompany netting and how companies can use its processes as a strategic asset.

The discussion delves into the ways businesses are leveraging netting to gain real-time visibility into their cash positions, reduce risk exposure, and enhance decision-making processes. Kessler draws on his extensive experience in corporate treasury to explain how businesses can unlock value by refining their internal settlement processes, especially considering higher interest rates and unpredictable market conditions.

Key takeaways from the episode include:

• Understanding intercompany netting: How consolidating payments across subsidiaries can reduce foreign currency conversion fees and wire costs, while providing a clearer view of global cash positions.

• Enhancing cash forecasting: The role of netting in improving cash flow predictability by offering visibility into intercompany transactions and liquidity across multiple regions.

• Strategic capital allocation: How businesses can use netting to repatriate cash, pay down debt, and deploy capital where it’s needed most.

• Iterative improvements: The importance of refining cash forecasts over time by incorporating netting data into broader financial strategies.

This episode highlights how intercompany netting is playing a crucial role in modern treasury management, particularly in uncertain economic climates.

Click here to watch Part I of this episode.

The opinions expressed on FX in Focus are those of the speakers only, and do not necessarily reflect the views of Corpay Inc.