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Cash management advisory

Cash management advisory designs how a company's bank accounts, pooling and sweeps work, so cash is visible and idle balances earn a return. CFOs and treasurers hire FIRMA Advisory as an independent cash management consultant before accepting a bank proposal or after growth has fragmented accounts. The outcome is fewer accounts, pooled liquidity and better yield.

When companies bring us in

Companies bring us in when their account structure no longer matches the business, or when a bank proposes a new one. These are the usual triggers.

  • A bank has proposed a new cash management structure, and the CFO wants an independent view.
  • Several banks have sent competing proposals that are hard to compare.
  • The company runs dozens of accounts, and nobody can explain why each one exists.
  • Large balances sit in operating accounts earning little or nothing.
  • Subsidiaries hold cash locally while headquarters funds itself on a credit line.
  • Sweeps or pooling were set up years ago and no longer fit the group structure.

What we deliver

You receive an account map, a target structure and an independent comparison of the bank proposals on the table. The table shows each deliverable and its timing.

DeliverableWhat it containsTypical timing
Account and balance mapEvery account by bank, entity and currency, with its purpose, average balance and yield.End of phase 1
Target account structureAccounts to keep, close or merge, plus the sweeps or pooling that connect them.End of phase 2
Pooling designPhysical or notional pooling options compared, with legal and tax points for your advisers.End of phase 2
Yield plan for idle balancesOperating, reserve and strategic cash separated, with options for each tier.End of phase 2
Proposal comparisonBank proposals normalized on structure, pricing, yield and implementation effort.Phase 3

How an engagement runs

Engagements run in three phases, from the account map to an implemented structure. Bank documentation and onboarding set the pace of the last phase.

  1. Account map, weeks 1 to 2. We map every account, balance and flow across banks and entities. Idle cash and the yield it earns are measured from statements.
  2. Structure and proposals, weeks 2 to 5. We design the target structure and, where useful, request proposals from banks. Each proposal is normalized so the options compare like for like.
  3. Implementation, weeks 5 to 10. We support account closures, new sweeps or pooling, and the placement of surplus cash within policy. Results are checked on the first statements.

What changes for the client

Outcomes are measured on bank statements and balance reports. These are the outcome types we report.

  • Accounts closed or merged, and the fees removed with them.
  • Share of group cash inside a sweep or pooling structure.
  • Yield earned on surplus balances, before and after.
  • Days to a consolidated cash position across banks.
  • Credit line usage avoided by using internal cash first.
  • Bank proposals compared on a single, documented basis.

Why an independent former banker

Bank cash management sales teams design account structures for clients every day, and every proposal reflects the bank's own goals. Federico Lleonart worked in cash management at J.P. Morgan and as Vice President Cash Management Sales at Barclays.

What does a bank cash management sales team propose, and why?

A proposal usually brings more accounts, flows and balances to the proposing bank. Deposits, payment volume and FX all add to the value of the relationship for that bank.

That is not wrong, but it is not neutral either. The best structure for the bank is not always the best structure for you.

How should accounts be structured?

Each account should have a clear purpose: collections, payments, payroll, tax or reserves. Accounts without a purpose add fees, risk and reconciliation work.

Physical or notional pooling, or simple sweeps?

Sweeps move balances automatically between accounts at the same bank, usually into a header account. Physical pooling extends this across entities and creates intercompany positions.

Notional pooling offsets balances for interest without moving cash, but fewer banks offer it today. The right choice depends on your entities, countries and tax position.

How do you earn a yield on idle balances?

Cash is split into operating, reserve and strategic tiers. Operating cash stays liquid, while reserve and strategic cash can earn more within the limits of your policy.

We set the tiers and the bank options for each one. We do not recommend specific securities or investments.

How do you compare proposals from several banks?

Banks present structure, pricing and yield in different formats. We normalize each proposal into one template, with fees, earnings credit or interest, and implementation effort side by side.

The comparison shows the real cost of each option over time. You decide with the full picture, not the most persuasive presentation.

FIRMA Advisory sells no deposits, investments or banking products and takes no commissions from banks. A senior cash management consultant leads the work from start to finish.

For consulting firms and private equity teams

Consulting firms bring us in as the cash management specialist on finance transformation or working capital programs. Private equity teams use us to restructure portfolio company accounts, and our partner model explains how we work with your team.

Frequently asked questions

These are the questions treasurers and CFOs ask before a cash management review. Each answer is direct.

Can you review a proposal our bank has already sent?

Yes, and that is a common starting point. We review the proposed structure, pricing and yield against your actual flows and balances. Where it helps, we ask one or two other banks for competing proposals, then compare them all on the same basis before you commit.

How much does it cost, and how is it structured?

Pricing depends on the number of banks, entities and countries in scope. Many clients start with a fixed scope review of accounts and proposals, then continue into implementation as a project. Ongoing reviews of balances and bank terms can run as a retainer. See engagement models and fees.

How long does a cash management review take?

A typical engagement runs 6 to 10 weeks from the account map to an implemented structure. A review of a single bank proposal can be much faster. Account closures and new pooling depend on each bank's documentation and onboarding timeline.

Do you work remotely or on site?

Most of the work runs remotely, because it is based on statements, balance reports and bank proposals. Meetings with banks can be held by video or in person. On site workshops with the finance team can be added where they help. Travel is billed at cost and approved in advance.

Which regions and languages do you cover?

We work with companies banking in the United States, Europe and Latin America. Federico Lleonart works in English, Spanish, Portuguese, Italian and French, so bank proposals and negotiations in those languages are handled directly. Multi-country structures are reviewed with one consistent method.

Is our banking data kept confidential?

Yes. Statements, balances and bank proposals are used only for your engagement. They are never shared with banks or other clients without your approval, and one bank's proposal is never disclosed to another. Client names and results are not published without explicit consent.
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Related insight: Physical or notional cash pooling compares the two structures for mid-sized groups.

Engage

Put idle cash to work.

Book a short call with an independent cash management consultant who knows how bank proposals are built. We will outline what a review of your accounts would show.

Book a 30 minute call [email protected]