What is In-House Cash?

In-House Cash (IHC) is a treasury management technique where a company centralizes its financial transactions through an internal bank, usually a shared service center. Subsidiary companies conduct their payments and receipts through this internal bank instead of directly using external banks. This allows for improved cash visibility, streamlined payment processes, better control over funds, reduced transaction costs, and enhanced liquidity management across the entire organization. IHC systems often handle intercompany netting, FX exposure management, and internal financing.