Banking Pool It is a term used in the world of banking and finance when a company requires loans or any similar product. It is among the fundamental documents that are requested to analyze the case and determine whether or not the financing request is appropriate.
In this article we tell you everything you need to know about this document, what is its usefulness, uses and the information it must contain to be useful.
What is this document?
The financial department of a company is totally familiar with the concept, since it is a document that they need in their daily relationship with financing entities, and it is even useful at times to deal with customers and suppliers.
It’s about a document that details the external financing received by the company, from loan entities such as a bank or non-bank financial entities. Here we do not touch on finance or suppliers, but exclusively the financial debt that the company has acquired.
The Banking Pool allows determining the credit risk level of a company, something that allows financial entities to know if it is appropriate or not, to include new financing to the pre-existing structure. This, depending on the capacity of said company to bear the burden of debts.
Internally, the Banking Pool allows the company to maintain a accurate record of your entire debt structure, as well as the guarantees that it maintains with each entity and making forecasts about the financial health of the organization, something fundamental for decision-making.
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What information should a Banking Pool contain?
In general, this document must compulsorily contain all the financial products that have been contracted, giving priority to the following information:
- Identification of the company and date of preparation of the document.
- Type of financial product contracted, separated by financing term and specifying its class: loans, confirming, leasing, factoring, credit policies, commercial discounts and any other.
- Amounts according to the type of product.
- Maturities according to the type of product.
- Guarantees provided for each financing operation.
- Economic conditions, where the interest rate and commissions for each operation are detailed.
- Summary of each financing contracted, organized by entity.
It is necessary for companies to keep this information up to date, as this allows them to be certain about their financial health and allows them to carry out correct negotiations with suppliers and customers.
Another important issue regarding the subject is that the information contained in the Banking Pool must coincide with what is registered by the Central Bank of Risk Information of the Bank of Spain (CIRBE).
In this database, confidential information is collected on the risks that financial institutions have with their clients, with balances exceeding 6,000 euros. The Banking Pool that is extracted from the accounting of the company needs to have a high percentage of coincidence with the information registered in said database.