Cash management – Mandatory truck system


| 9-8-2017 | Douwe Dijkstra |

As an interim treasurer, several times when I commence a new assignment at a new client for a cash management implementation the bank selection for the cash management solution to be implemented has already been done. Not by the treasury (or any other) department, based on a request for proposal or any other selection criteria but as a result of the mandatory truck system (“verplichte winkelnering”).

The bank, or in case of a syndication the banks, already defined in the (syndicated) facility agreement which bank(s) will operate the borrowers cash management.

It goes without saying that this obligation means that not always the best choice for the company has been made. The “best cash management bank” can be different for each and every company (although some banks may pretend to have the best solution in all areas for all companies). Important criteria are whether a company is centralized or decentralized, what specific products the client requires from the bank, the price list of the bank, the foot print of the bank etc. etc.

It’s my observation that officers negotiating the (re)financing consider cash management as the way it is described e.g. “side business”. Banks try to make the decision makers for the facility agreement believe that they do not earn anything on it. Thus, the circle is complete.

Douwe DijkstraDouwe Dijkstra – Owner of Albatros Beheer & Management

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