Answer
Usually a hybrid. For multi-jurisdiction groups, pure global notional rarely works. Use physical cash pooling where the center must own cash; use notional pooling only in corridors where law and the bank actually offer it.
Why
| Need | Better fit |
|---|---|
| Cash at a header for investing or funding payments | Physical concentration |
| Interest offset without moving principal | Notional — if offered |
| Entities cannot sign cross-guarantees / set-off | Notional is usually off the table |
| Heavy FX control or cross-border interest tax | Domestic pools first; cross-border as a separate design |
| Corridor is [[china | China]] or similar |
Physical sweeps create intercompany loans and tax work. Notional shifts the paperwork to guarantees and interest allocation — it does not remove legal/tax design.
Next
Mechanics: cash pooling and notional pooling. Cross-border: cross-border cash pooling. China filter: can we do notional pooling in China?.