It is to transfer funds within the group through entrusted loans. Entrusted loan simply means that one party lends money to another party and entrusts it to a third party (commercial bank) for management. Commercial banks do not bear the risk of loan losses, but are only responsible for issuing, supervising the use and assisting in the recovery of loans on their behalf according to the objects or investments designated by the clients, the prescribed purposes and scope, and the set conditions (amount, term, interest rate, etc.). Entrusted loans are used as a way to circumvent the inter-company lending ban.

The basic operation of the cash pool is to set up a group cash pool account in the name of the company's headquarters, and transfer the funds of subsidiaries to the cash pool account regularly every day by entrusting loans from the headquarters. When making external payments during the day, if the balance of the subsidiary's account is insufficient, the bank can provide overdraft payment limited to the amount of the fund position deposited in the headquarters; At the end of the day, the system will automatically transfer the funds in the fund pool account to the account of the member enterprise, and make up the overdraft amount by returning the loan entrusted by the headquarters to the subsidiary. According to the prior agreement, the entrusted loan interest is settled within a fixed period of time, and the interest is transferred through the bank.

Entrusted loans have lifted the ban on inter-enterprise lending, making it possible for enterprises to centrally and effectively manage cash.