Cash Positioning

Once you've maximized the use of your cash through more efficient collections and disbursements, you'll want to make sure you're maximizing your return on your cash assets. The challenge is to manage this excess cash to reap the highest return while still maintaining the liquidity necessary to meet daily working capital requirements.

Zero Balance Accounting (ZBA) ‐

ZBA allows you to automatically transfer funds among your accounts at our bank according to your pre-established instructions.

ZBA can be used as a Funds Concentrator or a Funds Distributor. As a Funds Concentrator, ZBA can monitor depository accounts used by your various locatons, stores, or departments and automatically transfer their deposits into your designated master account. This allows each depositing location to maintain its own account, but with the funds concentrated into a single account.

As a Funds Distributor, ZBA allows you to disburse funds from multiple special purpose accounts (such as a payroll account), with the funds being automatically distributed into the disbursement account only when items have been presented for payment.
This minimizes excess balances in the disbursement accounts, increases the availability of cash for other purposes (like investments or debt reduction) and allows for a greater return on cash resources.


To find out more information about any of these Treasury Services, please contact a member of our Treasury Services team.

Investment Sweep

An Investment Sweep enables you to earn interest on funds that would normally remain idle in your checking account, while maintaining liquidity to support all of your checking transactions. Excess cash is automatically transferred into an investment instrument at the end of each day.

You have two investment options – You can choose to have your cash swept into an interest-bearing depository account maintained at our bank’s offshore branch. This is referred to as a Eurodollar sweep; or you can choose to invest the funds in a Repurchase Agreement, which involves our transferring overnight ownership to you of a security from our bank’s investment portfolio.

Since Investment Sweeps are fully automated, no manual intervention is required on your part. Funds are transferred into the investment automatically, and returned to your account automatically.  

INVESTMENT SWEEPS ARE:

NOT DEPOSITS OF THE BANK OR
AN AFFILIATE OF THE BANK

NOT INSURED BY THE FDIC OR ANY
FEDERAL GOVERNMENT AGENCY

NOT GUARANTEED BY THE BANK
OR AN AFFILIATE OF THE BANK

MAY LOSE VALUE





Loan Sweep

Loan Sweep automates your use of a working capital line of credit. When funds remain in your checking account at the end of any day’s posting of transactions, these funds can be automatically applied as a payment to your line of credit. Likewise, when additional funds are needed to support your checking transactions, the Loan Sweep service can automatically confirm whether there is remaining credit availability on your line, and if so it will make an advance into the checking account.

Because the Loan Sweep is executed exactly when needed and in exactly the right amount, you never have to worry about borrowing too soon or too much.

Please note: Certain lines of credit have covenants that govern the manner in which draws and payments can be made. Because of this, not all lines of credit are eligible to use the Loan Sweep service. Your relationship manager can help you determine if your line is eligible.

Controlled Disbursement

Controlled Disbursement allows check-writers to predict the dollar value of checks that will be presented for payment during the current business day. Armed with a reliable estimate of check clearings, your cash position manager can determine the amount of money that must be placed into the checking account each day.

Controlled Disbursement is especially useful for customers who obtain their funding from administered lines of credit (such as an “asset based” type of line) because such lines are not eligible for automated “sweep” services. Controlled Disbursement can also be useful for companies who are funded by their home office in another location, because knowing your funding requirement for the day can help you determine the amount to have wired into your account from the remote source.