What are treasury payments?

Introduction to treasury payments

Treasury payments are a subset of corporate payments that are made as part of a company’s treasury management activities. This includes both day-to-day cash management and more strategic activities aimed at controlling liquidity, funding, and financial risk. Treasury payments are typically controlled by a company’s treasury department.

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Main types of treasury payments

Depending on a company’s financial situation and treasury strategies, it will need to manage, initiate, and track payments for some or all of these transaction types:

• Repaying loans
• Servicing debt
• Managing margin requirements for hedges and other financial instruments
• Settling hedges, such as options or forwards
• Managing currency exposure, including payments for foreign currency conversions
• Investing surplus cash into short-term or long-term investments
• Settling corporate finance deals 
• Coordinating intercompany payments to manage funds between different entities or as part of a cash pooling strategy

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How to manage treasury payments

Treasury payments can range from simple recurring interest payments to more complex transactions, such as settling the cash consideration for closing an M&A deal. Improper management of these payments can lead to serious negative outcomes, given the financial risks involved.

A common type of treasury payment is an intercompany transaction between different entities within the same group, often carried out as part of a cash pooling strategy to maintain sufficient liquidity across the group and consolidate cash for higher-return investments. Atlar enables automated sweeping workflows for exactly this purpose, helping customers to manage liquidity with ease.

Given the risks and large transaction values involved, treasury payments should be handled by the treasury team or individuals with specialized training, and ideally using a treasury management system or similar. Such systems provide features like approval chains, role-based access controls, and audit trails that are essential to managing complex financial transactions in a compliant way.

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How Atlar can help with treasury payments

Modern treasury platforms like Atlar centralize payments and other key operations, such as cash management, reporting, and accounting, into one unified system that integrates with banks, payment platforms, and ERP systems. This makes it an appealing option for companies that have outgrown manual processes and are looking to combine payments with cash flow, liquidity, and other treasury activities.

If your company is exploring ways to improve its payment processes, talking to our team is a great place to start. Book a 30-minute demo to discuss best practices and see Atlar’s payment capabilities in action.