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An advantage of having a centralized treasury department is that necessary borrowings can be arranged at keener interest rates than for smaller amounts
Can you please explain what they are explaining here sir
Instead of each separate company negotiating to borrow money separately, a centralised treasure department can arrange the borrowing needed in total by all of the companies.
Because they will be negotiating to borrow a larger amount they will generally be able to negotiate a lower interest rate than would be charged to each individual company if they were doing the borrowing themselves.
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