Centralized cash flow management

Centralized cash flow management

Provision of consolidated cash management decisions to all MNC units from one location, usually at the parent's headquarters.

Centralized Cash Flow Management

The practice of a large corporation, especially a multinational, making all cash management decisions from headquarters. That is, individual units have little autonomy under centralized cash flow management. This has the advantage of being a uniform policy throughout the company, but management may be time consuming and possibly not as efficient.