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
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Treasury department
4y ago#1Instead 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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