Despite 16 companies in 13 countries: ERCO GmbH, with the support of Commerzbank, managed to improve its liquidity planning. With immediate effect the company has access to worldwide account and entry information at a glance – always up-to-date and transparent.

Flexible cash pooling was introduced to do this. Depending on the company and account, the pooled accounts are set at zero (zero balancing) or an individually set basic amount remains in the account (target balancing).

Lots of routine work in the accounts department was automated and calling up the data electronically saves time for the company. Using the electronic banking application “Commerzbank MultiCash”, employees in the accounts department can get a quick overview and plan exactly.

Liquidity planning domestically and abroad had to be improved. To introduce group-wide cash pooling, it had to be investigated which companies in which countries could be included in a cash pool with which accounts. The aim was optimising interest planning by reconciling credit and debit balances.

Just how important good planning is for ERCO GmbH becomes clear when looking at the corporate structure: the system provider for lighting generates more than 75 per cent of its total sales abroad. Its foreign companies – also due to the currency risk – are subject to a more widely fluctuating liquidity situation than its domestic companies. A situation that has made group-wide liquidity planning more difficult in the past.