Relationships Between the Holding and the Group of Companies
Holding companies, being corporate entities that own or control other companies known as subsidiaries, can play a crucial role in managing finances through intercompany loans. This strategy can be particularly useful for the efficient reallocation of resources and tax optimization, provided it is handled appropriately and within legal boundaries.
Another way in which holding companies can facilitate loans among the companies they comprise is through the establishment of a current account between the entities. The current account can be used to transfer funds between the companies, which can be useful for managing the liquidity of the entities.
Loans from holding companies are often cheaper than bank loans, as holding companies have access to more affordable sources of financing.
In general, holding companies can be an important source of income for suppliers. Holding companies typically possess substantial capital and can use this capital to purchase goods and services from suppliers. Additionally, holding companies can serve as a significant source of clients for suppliers. Holding companies often have numerous affiliated companies, and these companies can be customers of the suppliers.
