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 expenses.

Investment Sweep Account - If you consistently have excess cash balances in your business checking account, you may be missing out on significant earnings potential on these cash resources. With an automated investment sweep account, excess cash is automatically transferred into an investment vehicle at the end of each day.

A sweep account combines a business checking account with an investment account, usually a money market mutual fund or overnight repurchase agreement. It gives companies the ability to manage their daily cash position and maximize their earnings.

The beauty of a sweep account is that sweeps are daily and automatic - no manual intervention is required. When your checking account balance reaches a predetermined target balance, money is swept overnight from the checking account into repurchase agreements or interest-yielding money market funds, available in a variety of interest rates and risk levels. Funds are then swept back into the checking account as needed to cover presentments.

Loan Sweep Account - These are similar to investment sweep accounts, except that money is swept from a line of credit into the checking account if the checking account balances falls below zero. Excess balances in the checking account are swept to the line of credit as a principle reduction, thereby reducing interest expense. The sweeps are automatic, with no account monitoring or manual intervention required.

Find out more information about Cash Management Services please contact a member of our Cash Management team.