Sweep Services
Sweep services help businesses automatically manage liquidity by transferring funds between designated accounts. This ensures balances are optimized for daily operations, investments, or debt management without the need for manual intervention.
How It Works:
- Zero Balance Sweep: Excess funds are automatically moved into or out of a primary operating account to maintain a target balance.
- Investment Sweep: Surplus funds are transferred into an interest-bearing or investment account, maximizing earnings on idle cash.
- Loan Sweep: Extra cash is used to automatically pay down a line of credit, reducing interest expense, while funds can be swept back if needed.
Benefits of Sweep Services:
- Optimized Cash Flow: Ensures accounts always have the right amount of liquidity.
- Efficiency: Automates fund transfers, reducing manual monitoring.
- Cost Savings: Minimizes idle balances and reduces borrowing costs through loan paydowns.
- Maximized Earnings: Surplus funds generate returns through interest-bearing accounts.
- Convenience: Provides “set it and forget it” cash management with customizable thresholds.
- Control: Businesses can set target balances and parameters to align with their cash flow needs.
Common Uses / Services:
- Maintaining a zero balance in payroll or subsidiary accounts
- Maximizing returns by sweeping excess cash into an interest-bearing account
- Reducing interest costs by sweeping idle funds to pay down lines of credit
- Supporting treasury management for businesses with multiple accounts
- Automating transfers between operating, reserve, and investment accounts