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| ==Corporate finance==
| | The netting of instructions relating to obligations between two or more parties, as a result of which neither satisfies nor discharges those original individual obligations. |
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| Corporate finance theory (risk/reward) is applied in practice to evaluate sources and uses of finance. This encompasses everything from capital structure (debt, equity and dividend policy), through major business transformations (e.g. mergers and acquisitions) to individual financing decisions (e.g. whether to buy a particular machine).
| | Also known as Advisory netting. |
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| ==Long term funding==
| | This is also referred to as payment netting in the case of payment orders. |
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| The success of the organisation is dependent on access to funds. Identification of the most appropriate sources of funding to achieve the organisation's medium / long term objectives and putting funding solutions (including documentation) in place will ensure that funding is available whenever required.
| | == See also == |
| | * [[Netting]] |
| | * [[Payment netting]] |
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| ==Investment==
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| Treasury needs to be prepared to handle cash surpluses as well as borrowing requirements. A financial investment strategy (based on security, liquidity and yield) that is consistent both with the needs of the business and with its risk appetite, should be in place as well as methodology to monitor the creditworthiness of investment counterparties.
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| ==Intercompany funding==
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| Intercompany funding of subsidiary operations is generally an efficient source of funds for an organisation. It may not be straight forward to implement or manage, as tax, legal and regulatory aspects must all be taken into account especially when setting up intercompany structures such as netting systems, In House Banks etc.
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Revision as of 14:20, 23 October 2012
The netting of instructions relating to obligations between two or more parties, as a result of which neither satisfies nor discharges those original individual obligations.
Also known as Advisory netting.
This is also referred to as payment netting in the case of payment orders.
See also
