Sweep Services provide your company with the opportunity to earn a competitive rate of interest on idle funds and/or minimize your company’s interest expense by automatically drawing on or paying back borrowed funds. Your company will specify the target balance(s), sweep increments and priorities for the sweep structure according to your business needs. These sweep services provide your company the liquidity of funds for the payment of outstanding checks.
The Investment Sweep service transfers all excess daily collected balances over a customer’s specified target balance into an overnight investment instrument. If funds are drawn below the target balance, the funds are matured from the investments and redeposited to the checking account.
The Loan Sweep service ensures that funds are borrowed from a UMB Line of Credit only when necessary and the line is paid down as soon as funds are available. Payments to the line have no minimums or increments. At the end of each day, your account is analyzed to determine whether you require funds to pay disbursements or whether the line of credit can be paid back with excess funds. Since payments are automatic, your interest expense is kept to a minimum.
The Combination Sweep is designed for seasonal and cyclical companies. Sweep priorities and target balances are established so as idle funds eligible for overnight investing decline, UMB will automatically sweep funds from a line of credit as needed for your daily operating needs. As incoming cash flow increases, your available deposits will be swept to reduce your line of credit before investing funds. The cycle will repeat daily as applicable to your company.