BofA Merrill Helps Clients Reduce Costs With Multicurrency Netting
Published: October 16, 2017
New Solution Gives Companies Greater Visibility and Control Over Their Inter-Company and Vendor Payments
Bank of America Merrill Lynch, a provider of global transaction services, is pleased to announce that it has expanded its payments capabilities with the launch of Multicurrency Netting. The new solution centralizes inter-company payments, enabling large companies that operate across multiple borders to reduce both the number of payments and the total value of payments made between companies that regularly invoice one another.
Large corporations typically make hundreds of inter-company payments worth millions of dollars every month. In addition, they must handle invoices in numerous currencies issued by their own affiliates or with vendors that support more than one entity within the company. Many times, specialized programs are needed to help calculate what each entity owes the other.
By moving to a centralized netting solution, multinational companies can realize many benefits, including:
- Fewer wire transfers, resulting in lower bank and lifting fees.
- Fewer local currency bank accounts and related expenses.
- Reduced foreign exchange exposure and trade activity.
- Less time spent handling invoices and reconciliation tasks.
“The Multicurrency Netting solution introduced today is in response to direct input from our corporate and commercial clients who want greater visibility and control over their inter-company and vendor payments,” said Liz Minick, head of Global Cross-Currency Product and Strategic Client Capabilities in Global Transaction Services. “We are pleased to add this powerful cross-currency solution to our suite of FX payment tools.”
The Multicurrency Netting solution also includes a number of features that were specifically requested by our clients, such as:
- Workflow and communication tools for invoice management.
- Competitive and transparent FX trading rates from BofA Merrill.
- Comprehensive metrics and reporting, with direct updates to company accounting platforms.
To help ensure a successful implementation process, BofA Merrill will help clients customize the solution to match their company profile, and guide them through all setup requirements.
BofA Merrill offers a global suite of payments solutions to help companies optimize their working capital with greater precision and control. In addition to Multicurrency Netting, the bank offers a multitude of solutions through our CashPro®platform, such as wire transfers for urgent and high value payments in over 140 currencies covering more than 230 countries and territories, high volume payments, Digital Disbursements, card solutions and ePayables and receipts management.