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 cash management by automatically moving money to and from investment or credit accounts as needed…to keep your funds earning at their maximum potential.
How does it work?
We work with you to set a target balance for your account. Then at the end of each business day, our service “sweeps” the account for excess funds and ensures it is invested or paid down on debt.
*Sweep services are integrated with your Business Checking account.
Money is automatically moved, allowing you to spend more time with other aspects of your business
Potentially earn interest and/or reduce interest expense.
Types of Sweeps
On a daily basis, checking funds in excess of the target balance are transferred to your investment account. Conversely, if funds are needed for payments, 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.
Zero Balance Accounts
- Eliminate idle funds
- Minimize wasted time and labor costs
- Maximize interest income
- Reduce interest expense
Consolidate your cash by utilizing a Zero Balance Account. A nightly balance of Zero ( or a Target Balance) is maintained by automatically transferring funds to or from a master account. Zero Balance Accounts allow you to segregate activity for payroll, wires, ACH or deposits.