“Intercompany lending is an important source of funding for global firms. A well-run program gives a company greater control over funding sources, tax liabilities, repatriation and foreign exchange exposures, all of which reduce its risk profile.” said Elyse Weiner, Global Head of Liquidity and Investments with Citi's Global Transaction Services.

The key features of the Intercompany Lending Management module include, but are not limited to, providing users with the ability to:

Manage internal counterparty exposures by setting lending and borrowing limits between entities

• Initiate loans in any currency to accrue at defined rates, day basis, accrual methods, etc
• Maintain withholding tax rates to calculate tax liabilities
• Approve and monitor loan requests and amend terms online
• Centralize and manage data on legal structures, their functional currencies, fiscal-year, percentage of ownership, and more
• Store loan-related and other documents for easy retrieval
• Maintain an audit trail to support compliance tracking

“This new service provides a well-defined loan management process. It simplifies the complexities of coordinating even the most elaborate cross-border lending activities, without requiring an investment in technology,” reports Cindy Gerhard, Global Head of TreasuryVision with Citi's Global Transaction Services. “It eliminates less efficient tracking via spreadsheets and off-line archives of loan agreements” she said.