Sweep Account

Incredibly convenient to use, Union Bank's Sweep Account is a way to make sure your end-of-day balances continue to work for your business. Choose from an Investment Sweep Account or a Commercial Loan Sweep Account.

Investment Sweep Account features:

  • All funds in excess of zero (or a pre-established target balance) at the end of each day are automatically swept into an investment vehicle
  • All funds remain available to cover disbursements
  • Available as a Deposit Sweep or Repurchase Agreement.

Commercial Loan Sweep Account features:

  • Once a line of credit is established, any funds needed to bring the account to zero (or a pre-established target balance) at the end of each day are automatically deposited from your line of credit
  • As excess funds are deposited to the account, they are automatically used to pay down the line of credit
  • This maximizes the use of funds by minimizing interest expense, preventing overdrafts and eliminating anticipatory funding of disbursement accounts

Zero Balance Account (ZBA) features:

  • Once a master operating account is established, you can add as many subsidiary Zero Balance Accounts as needed for disbursements and/or deposits.
  • For disbursements, checks are written on a ZBA just as on any other account, however, the need to manually fund the checks is eliminated. Each day, the total of all checks presented against the ZBA is offset by a debit to the master operating account, brining the ZBA back to zero or a pre-established target balance.
  • For collections, the total of all deposits made each day to the ZBA will be transferred automatically to the master operating account, keeping funds concentrated in one main account. Once again, the ZBA is brought to zero or a pre-established target balance.
  • ZBAs can move money to or from a master account or another ZBA. Transfers are easily tracked through cross-referencing account numbers on bank statements.

 

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