Line of Credit Sweeps Account for Businesses
To ensure your line of credit is paid down at regular intervals, credit sweeps are a helpful cash management tool offered by Sunwest Bank. Our credit sweeps transfer idle or excess funds from your deposit account to your credit sweep account.
- Loan Pay Down – When requested, a set amount is transferred from your checking account to your Sunwest Bank line of credit.
- Two-way Loan-sweep – You designate a target balance in your checking account. When the balance falls below that amount, it will trigger an automatic transfer from your Sunwest Bank line of credit to your checking account to bring it back up, or vice versa to pay down your line if extra funds accumulate.
Credit sweeps are a legitimate and beneficial cash flow tool Sunwest Bank offers on your business line of credit. We automatically transfer idle or excess cash to pay your outstanding debt principal and reduce interest expense.
Sweeping credit cards or personal loans is illegal; however, business credit sweeps on lines of credit are a legal and helpful way to optimize cash utilization. The automated money transfers take effect quickly, usually within a business day.
Primary benefits of credit sweeps include:
- Paying down debt faster by sweeping excess money
- Optimizing cash flow by covering shortfalls from your Sunwest Bank line of credit
- Reducing interest costs paid by limiting outstanding principal balance
- Keeping checking account balances at target levels
Rather than idle cash sitting in low-interest savings or money market accounts, credit sweeps allow those dollars to work harder by making payments on higher-cost debt with Sunwest Bank. This can dramatically improve a business’s cash position.
Discuss enabling automated credit sweeps on your line of credit with your Sunwest Bank business banker. Intelligent use of idle money provides major advantages for your cash flow, interest savings, and financial flexibility. Credit sweep arrangements with Sunwest Bank keep your accounts optimized.
Subject to Sunwest Bank’s Standard Approval and Underwriting Guidelines