LoanSweepAccount
ALoanSweepAccountlinksyourbusinesscheckingaccountandrevolvinglineofcredittoworktoyourbenefit.Witha
LoanSweepaccount,advancestoyourcheckingaccounttocoveroverdraftsand/ortransferstoyourlineofcredittopay
down balances, are automatic.
HowdoesLoanSweepwork?
Together,youandyourbankerdetermineatargetbalanceforyourbusinesscheckingaccount.Thetargetbalancemaybe
settotheamountneededtooffsetservicechargesortozero.Whenyouraccountbalancefallsbelowthetargetbalance,
theexactdollaramountisadvancedfromyourrevolvinglineofcredit,tobringthebalancebacktoyourtargetbalance.
Whenyouraccountbalanceexceedsthetargetbalance,theexcessmoneyisswepttoyourlineofcredittopaydownthe
balanceonit.Asub-account,suchaspayrollaccountoranInvestment * SweepAccount,canalsobetiedtoyourchecking
account.IffundsareavailableintheInvestmentSweepaccount,theywilltransfertoyourcheckingaccountbeforeany
advance is made from your loan.
Whocanuseit?
•Businesseswithrevolvinglinesofcredit
Features:
•Automaticadvancesviasweep
•Advanceamountsareaccuratetothepenny
•Abilitytolinksub-accounts
•AbilitytolinkInvestment*Sweep
Benefits:
•E aseandConvenience–fundsareautomaticallytransferredfromyourlineofcredittoyourcheckingaccountwhen
balancesarebelowthetarget;whenbalancesexceedthetarget,apaymentisautomaticallymadetothelineof
credit
•C ostSavings–youborrowandpayinterestononlytheamountrequiredtobringyourcheckingaccounttoitstarget
balance
•C ompleteOverdraftProtection–youprotectallyourbusinesscheckingaccountsfromoverdrafts
•I nterestMinimization–excessfundsaresweptfirstintothelineofcredittominimizetheinterestyoupay;ifyour
loanbalanceiszero,fundssweeptoyourinvestmentaccount,andsimilarly,moneyswepttoyourcheckingaccount
isdrawnfirstfromtheinvestmentaccountandsecondfromthelineofcredittominimizeinterestexpense
*Notadeposit•NotFDICinsured•Notinsuredbyanyfederalgovernmentagency•Notguaranteedbythebank(orsavingsassociation)•Maygodowninvalue
The Bank that Service Built