Corpay, a FLEETCOR (NYSE: FLT) brand and global leader in business payments, is pleased to announce that Corpay’s Cross-Border business has launched Netting Manager, a comprehensive solution that streamlines and automates the settlement process of internal invoices for corporations with global subsidiaries.
Netting Manager allows companies “to operate seamlessly across the globe by simplifying the process of intercompany netting – a financial practice used by multinational corporations to consolidate transactions in various currencies.”
It involves offsetting mutual obligations “between subsidiaries and centralizing payment flows. This not only reduces the need for multiple payments, but also simplifies the reconciliation process, resulting in both cost and time savings for businesses.”
Furthermore, it can help “create visibility into consolidated foreign exchange exposures, making it easier and less costly to reduce foreign exchange exposure from the parent level.”
Jim Kessler, Vice President, Currency Risk Analytics at Corpay Cross-Border, said:
“It’s simple, and that’s what is great about it. We developed Netting Manager with the intention that it would be easy to use. Many of the current netting solutions on the market are complex and require extensive onboarding, which results in higher costs and acts as a barrier for smaller companies with fewer resources. Netting Manager’s streamlined, user-friendly design allows multinational companies of all sizes to have the system up and running within days, compared to other existing systems that can take months to onboard.”
Netting Manager aims to “make intercompany netting accessible to more companies by providing access to a low-cost, intuitive solution that is easy to integrate with many core accounting systems.”
Core benefits of the solution include:
- Reduction in payment costs due to fewer payments
- Reduction in the number of banks used, leading to a reduction in float
- FX is centralized and aggregated, creating larger transactions with lower transaction costs
- Simplified payment procedures that allow for structure and greater visibility into intercompany settlements across the organization
Mark Frey, President, Corpay’s Cross-Border Solutions, said:
“We are extremely excited about the launch of Netting Manager and the expansion of our offering in the corporate treasury solutions space. We are proud to help businesses of all sizes navigate the intercompany netting process and look forward to continue developing solutions in this space.”
The complete netting solution “offers access to several comprehensive reports, including funding reports, participant reports, settlement reports and estimated saving reports.”
There is no cost to Corpay customers “to use the solution or generate reports, and the solution can be leveraged in all countries that allow netting.”
