Sweep services maximize your cash flow, allowing you to focus on what is most important to you—running your business.
Union Bank & Trust’s Sweep services improve your day-to-day treasury management with a simple, automatic way to keep your funds earning at their maximum potential. The addition of an automatic sweep, coupled with clear and concise account information, means you no longer spend time monitoring balances to ensure surplus funds are invested or paid down on debt.
Sweep services are integrated with your Business Analysis Checking account. We work with you to set a “target balance” of collected funds to be maintained in your account. The daily transfer amount is determined at the end of each business day, after transactions from all sources are considered in your account.
Union Bank & Trust’s Investment Sweep maximizes interest income. On a daily basis, checking funds in excess of the target balance are transferred to your investment account. Conversely, if funds are needed for disbursements, a transfer is made from your investment. Ask your Treasury Management Services Officer for information on our unique Short Term Federal Investment Trust account (STFIT).*
Working with your lender, sweeps may also be established with a line of credit to help reduce interest expense. Surplus balances are automatically transferred to reduce your loan balance. As funds are needed for disbursements, balances are automatically advanced from your credit line.
Combined Sweep Services
Your organization may also utilize both an investment account and line of credit to manage your business cycles. We can coordinate a sweep of your surplus collected funds between all accounts to reduce debt, or invest, based on current needs. Funds over your target balance will first be applied to your loan balance, then the investment account to generate additional income. Zero Balance Accounts (ZBA) are also available to help consolidate funds.
- Eliminate idle funds
- Minimize wasted time and labor costs
- Maximize interest income
- Reduce interest expense
Zero Balance Accounts
A ZBA is a checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks presented. This eliminates excess balances in separate accounts and maintains greater control over disbursements.