Thanks for the feedback, donatello.
So far, I went with your scene, which is static.
If you encounter that the Flag is a frame ahead, perhaps use a Point Cache or the Cloth Cache. But do not leave the forces on after caching.
There are typical problems when the Flag has a lower resolution than the "label," as the edge does not bend, which might show when it overlaps/intersects.
If you have a wild flag animation with significant differences in the mesh, go with a texture/material-based solution.
All the best